This is topic "DDSI Executives provide short Q&A, 12pm, 07.11.06" in forum Micro Penny Stocks, Penny Stocks $0.10 & Under at Allstocks.com's Bulletin Board.
Tony and Michael, Thank you very much for taking the time to meet with us. As always, we are delighted to find you accessible and eager to discuss the company with your shareholders." For the purposes of this half hour, we would like to submit to you some questions (some have already been provided) and we would like to hear from you about the company, its current operations, and its future. We understand that you can only share public knowledge, but any personal insights, ideas, and opinions about the market, the industry, or yourselves personally, would be of great interest to all of us. Thank you again for taking the time for this Q&A session. We are all very grateful.
Posted by JIF on :
I'd like to submit the following questions to help facilitate the discussion.
Tony and Michael, please feel free to touch on any of these questions, or provide any thoughts and ideas of your own.
Ultimately, I think we're all looking for answers to the following:
1. What's your position on an R/S? 2. Where do you see the company growing in the next 12-18 months? 3. Do you have any deals/ contracts in the works? 4. Will you be reducing the O/S any time soon? 5. Can we be kept more in the loop with what is going on with the company more frequently via PR's? 6. Any chance you would redo the DDSI web site to look more like CGM? 7. How is turn over in your company? 8. How has the acquisition played out with CGM and did you have any culture conflicts/shocks? 9. How many employees do you have today? 10. Any new deals on the horizon/from the expo? 11. You had a great quarter in Q1. Should we expect another great 10Q for Q2? 12. You had a great 10Q for Q1. Why don't you think the pps moved higher? Was it because of the CD's? 13. Do you think the stock is correctly priced at .0002? Where do you think it should be? 14. If you generate enough revenues, do you plan to retire shares or do a stock buyback to minimize the float? That would certainly bring the value of the shares up and bring attention to the stock? 15. What is the reaction to the new Evidence Tamperproof Bags? Did they win the crowd at the Expo? 16. Can you tell us more about further R&D projects going on? 17. Has there been any interest from the government for products concerning the Tamperproof ID's or any other security products that the co. carries since the Bills Congress has initiated concerning Port & Border Security? 18. What is the approximate number of CD's that are slated to be retired in the coming year? We are all hoping that period is over! 19. Any chance you might initiative a stock buy back program, and, might that help get the stock off the ground? 20. What product or products do you sell to WAL-Mart?
Posted by DDSICGM on :
Hello, Tony and Michael here... We plan to provide insight, as to our present operations.
Posted by quickpicker on :
Welcome gentlemen. It a pleasure to have you here. The time you have taken is greatly appreciated.
Posted by DDSICGM on :
Regarding Question #1: As we have stated in the past, a R/S is being considered by the BOD as a possible option if it is in the best interests of the Company and the Shareholders.
Posted by Squire38 on :
Tony and Michael, welcome.
Do you guys think you could hit on the questions listed first?
Posted by JIF on :
Tony and Michael,
Welcome to our post. Thank you so much for joining us today. It is really a pleasure to hear from you. It's not often that the CEO and CFO take the time to chat with their investors like this. We really appreciate it.
In terms of today's format, above, please see some questions compiled these last few weeks by our members. I'm sure folks will chime in with other questions, but maybe we can warm up with a few of these. Please feel free to take a crack at any of them.
Posted by Schwabie on :
Yes, we know you are busy . We have some questions posted above and they are pretty much a sample of what we are wondering.
Posted by DDSICGM on :
This is not exactly interactive...thank you for setting up this forum for us.
Posted by Schwabie on :
Would you like one question at a time?
Posted by JIF on :
Tony,
Thanks for the insight about the R/S. What would be the possible advantages to doing an R/S? Usually investors don't like to see them happen, but we know they can be the only way to get the stock off the ground.
Posted by madmoney on :
quote:Originally posted by DDSICGM: Regarding Question #1: As we have stated in the past, a R/S is being considered by the BOD as a possible option if it is in the best interests of the Company and the Shareholders.
many pinksheet companies R/S and say it is in the best interest of the share holders, exsperience shows this is almost never the case. how can you assure investors that in the event of an R/S the company will be able to add real value to maintain and increase the share price post R/S should it come to that?
Posted by DDSICGM on :
Question 1 was answered in a previous post.
Question 2: "Company Growth in the next 12 to 18 months?"...Management focus is on growing revenues targeting three market areas...Domestic Security, European expansion and furthering our interests in the Asian markets. We are developing new products for the ever changing supply chain channels and seeking to expand our distribution channels.
Question 3:"Do We Have Deals in Work"...the Answer is YES...but we cannot comment on specifics due to non-disclosure and security requirments.
Posted by JIF on :
Tony,
Thanks for clearing this up for us because we always wonder why you don't put out a PR when you close a deal. We've always guessed it was because of security concerns and wanted to protect the privacy of your customers.
I guess we were right about that one:)
Posted by DDSICGM on :
Question 4: "Will we be reducing O/S any time soon?"...The answer is partially found in our answer to question #1. In addition, we can say that the company has no plans for a buy-back at this time.
Question 5: "Keeping Shareholders in the loop". Answer, we have implemented a PR/IR campaign. We plan to update our web presence (which is in process). We are limited, due to the nature of our services, by our clients as to what we can announce. We remain a fully reporting stock and will continue full SEC requirements.
Posted by ABEX TRADER on :
"non-disclosure and security requirments."
Why do we never see any PR's that would jeapordze either ,but would give the market a good estimate of what is happening. ---- Just a comment=RS 99% never work to the investors advantage.It on;y prolongs a downward cycle.
Posted by JIF on :
Tony, does this mean you're going to change the web site's look and feel - maybe to bring the DDSI and CMG sites together in a single address?
Posted by DDSICGM on :
Question 6: "Web Site": As mentioned earlier we are in process of revamping our entire web presence. We also plan to integrate an e-commerce site with our new plan. This is highly complex due to the nature of our products and our clients...but we are optimistic we can arrive at a plausible solution.
Question 7: "How is turnover"...Our answer on 3 levels...Employees...extremely low turnover..most have been with us for over 6 years.; Inventory: the turnover rate is pretty much where we need it to be. We are constantly looking to improve in this area.; Clients/Customers:..very low attrition
Posted by timmins4 on :
Tony, you say that we remain a fully reporting company - is that because of a possibility of a move to a higher exchange, or do government contracts require this criteria?
Posted by JIF on :
nice question Timmins!
Posted by madmoney on :
what is the current revenue status of your company, projections? margin? income? net profit?(loss) loss carryforward ect...current O/S - A/S numbers would be helpful
Posted by DDSICGM on :
Question 8: "Acquisition Integration". The integration of the two cultures went very smoothly. Management teams are focused on growing the business. Cross-selling of products is proceeding. Overall...VERY GOOD.
Question 9: We have 22 employees.
Question 10: "News on Horizon from Expo"..We are pleased with the results from the EXPO and are following up on the leads. Our next expo is ASIS in September in San Diego, followed closely by IACP in October, and an Intermodal Show in November...we are busy!
Posted by JIF on :
Similar to Timmin's question:
You are currently trading on the OTCBB. Any ideas about moving to a higher exchange?
Posted by DDSICGM on :
Question 11:"How about Q2"?...Well, we plan to report on time...and we continue to focus our total efforts on growing the business.
Question 12: "What about PPS?"...Any answer would be pure speculation.
Question 13: "Is stock correctly priced?" As a management team, we of course do not think so. However, the marketplace dictates.
Question 14: With enough Revenues do we plan to retire shares...?"..The answer is always REVENUES. and our goal is to increase them!. Right now a buy back is not in the plans.
Posted by DDSICGM on :
Question 15: "Reaction to EVIDPRO Bags"..The products are being well received by the target market.
Question 16: "R&D Projects"; We have announced NAVALOOP, which is manufactured by Navatech. This is just one of several products, including the EVIDPRO Bag series, that we are developing and testing. Tapes and Labels are constantly being refined to accommodate new surfaces and applications. WE CAN'T Talk about some of the other exciting products until it is time.
Posted by brackep on :
Tony and Michael,
Regarding your answer:
Question 14: With enough Revenues do we plan to retire shares...?"..The answer is always REVENUES. and our goal is to increase them!. Right now a buy back is not in the plans.
But you do keep this in mind for the future ? Or will this never be an option ?
Posted by timmins4 on :
Tony, when you addressed the Yale Club in Sept. 2005, you mentioned several times in the presentation that merger talks were occurring almost daily. Whatever became of these talks?
Posted by JIF on :
What is NAVALOOP? Maybe you could tell us a little more about that. It sounds exciting.
Posted by DDSICGM on :
Question 17: "Interest by US Govt in Products". The answer is yes...but we can't talk about it. We can say that the US Govt is among our over 2000 customers.
Question 18: "Approx CD's to be retired this year". The Debenture holders have the right to convert out their debt at whatever rate they see fit. We continue to work with our investors to explore alternative financing avenues.
Question 19: "Stock buyback"...see previous post.
Question 20: "What does WalMart buy from us?" Once again, we do not disclose what we are selling to individual clients per their security protocols.
Posted by JIF on :
In terms of future growth markets - where do you see most of your growth? Is it with goverment, homeland security, police, transportation, etc.
Posted by DDSICGM on :
Our time has expired...and we must move to another appointment.
Thank you again for your interest.
We look forward to the input of the organizers of the chat for feedback.
Thank you again..
Posted by brackep on :
Thank you for your time
Posted by JIF on :
Thank you very much for your time today, Gentlemen. It was much appreciated. Hopefully we can do this again in the future.
Posted by Squire38 on :
quote:Originally posted by DDSICGM: Question 20: "What does WalMart buy from us?" Once again, we do not disclose what we are selling to individual clients per their security protocols.
Is it at least feasible to release a PR stating that "DDSI finalized a contract worth XX amount with Company Y"? You're not disclosing anything more. If you already state government is a client, why not the amounts?
Many companies with contract with government release PRs stating we just sold 50,000 widgets to the Navy.
Just a thought.
Posted by DDSICGM on :
Just before closing, we have had the opportunity to review some of the comments. We do not have time now to address these.
However, if you compile another list, perhaps we can arrange for a similar exercise...maybe less questions and more interaction...but we will make ourselves available to our interested shareholders and investors.
Posted by JIF on :
Here is a summary of some of today's highlights:
We have 22 employees. Approximately 2000 customers
We plan to report on time...and we continue to focus our total efforts on growing the business.
The integration of the two cultures went very smoothly. Management teams are focused on growing the business. Cross-selling of products is proceeding. Overall...VERY GOOD.
"News on Horizon from Expo"..We are pleased with the results from the EXPO and are following up on the leads. Our next expo is ASIS in September in San Diego, followed closely by IACP in October, and an Intermodal Show in November...we are busy!
"Web Site": As mentioned earlier we are in process of revamping our entire web presence. We also plan to integrate an e-commerce site with our new plan. This is highly complex due to the nature of our products and our clients...but we are optimistic we can arrive at a plausible solution.
"How is turnover"...Our answer on 3 levels...Employees...extremely low turnover..most have been with us for over 6 years.; Inventory: the turnover rate is pretty much where we need it to be. We are constantly looking to improve in this area.; Clients/Customers:..very low attrition
"Keeping Shareholders in the loop". Answer, we have implemented a PR/IR campaign. We plan to update our web presence (which is in process). We are limited, due to the nature of our services, by our clients as to what we can announce. We remain a fully reporting stock and will continue full SEC requirements.
"Do We Have Deals in Work"...the Answer is YES...but we cannot comment on specifics due to non-disclosure and security requirements.
"Company Growth in the next 12 to 18 months?"...Management focus is on growing revenues targeting three market areas...Domestic Security, European expansion and furthering our interests in the Asian markets. We are developing new products for the ever changing supply chain channels and seeking to expand our distribution channels.
"Reaction to EVIDPRO Bags"..The products are being well received by the target market.
"R&D Projects"; We have announced NAVALOOP, which is manufactured by Navatech. This is just one of several products, including the EVIDPRO Bag series, that we are developing and testing. Tapes and Labels are constantly being refined to accommodate new surfaces and applications. WE CAN'T Talk about some of the other exciting products until it is time.
"Interest by US Govt in Products". The answer is yes...but we can't talk about it. We can say that the US Govt is among our over 2000 customers.
Posted by JIF on :
quote:Originally posted by DDSICGM: Just before closing, we have had the opportunity to review some of the comments. We do not have time now to address these.
However, if you compile another list, perhaps we can arrange for a similar exercise...maybe less questions and more interaction...but we will make ourselves available to our interested shareholders and investors.
Yes, I will go ahead and compile a list of follow up questions for you. Thank you very much for offering the follow up.
Posted by brackep on :
Well guys I think we can all be glad Tony and Michael were willing to participate this Q&A Session. Some of us probably wanted to see questions answered more in detail but we have to respect the fact they can't due to non-disclosure and security requirments.
Posted by ABEX TRADER on :
Please VOTE NO! for any RS-Thx!
We should see pps rise before that eever occurs,but they never work for the interest of the invstors.
J2 Comm. is about the only one I had ever seen do well after.It's in te 30's now I think.
Thxx for thee Q&A-I knew they would duck behind Non-Dis. and security reasons for no PR's.
Posted by JIF on :
Members,
Please take a few days to digest the info from today's session. Then, later in the week, we will compile a list of follow-up questions for Tony and Michael.
I think today's session definitely provided some "food for thought."
Posted by Squire38 on :
Well I have multi-millions of shares and personally I don't have a warm fuzzy feeling anymore. I see companies all the time state they sold products to the goverment, or they recieved a $3.5 million contract.
Posted by FARIMI on :
It looks very good! But the only thing it really scares me is the R/S. Companies has the wrong idea (don't know why)that the shareholders are beneficied for it. That is only few, to not say nobody. That is wrong.
Posted by Rasica on :
Jif........Thank You, for arranging this Q&A with DDSI Management! Posted by FARIMI on :
It looks very good! But the only thing it really scares me is the R/S. Companies has the wrong idea (don't know why)that the shareholders are beneficied for it. That is only few, to not say nobody. That is wrong.
Posted by Rasica on :
With the CD converting I do not believe an R/S would happen. Further, an R/S could be beneficial if we moved to a higher exchange.
Posted by madmoney on :
it was great that the company agreed to this session however the lack of any serious consideration for a buy back and the statement that the board of directors is considering an R/S does not entice me to invest further in this company at this time. i do appreciate the upfront and honest feedback. my thanks to the company and all who made this session possible.
Posted by FARIMI on :
It looks very good! But the only thing it really scares me is the R/S. Companies has the wrong idea (don't know why)that the shareholders are beneficied for it. That is only few, to not say nobody. That is wrong.
Posted by JIF on :
quote:Originally posted by Rasica: Jif........Thank You, for arranging this Q&A with DDSI Management!
No problem. Overall, I think it was a success. We made contact, and we had some questions answered. Also, we were offered more contact. That's the biggest thing. I was very happy when they offered to answer our follow up questions. I already have a few of my own.
Posted by ranjan on :
Isn't it possible for the company to say that it has x number of contracts, worth $x without naming anyone? With most of the questions, we appeared to hit a Chinese Wall... can't disclose, can't comment, etc etc..
Posted by JIF on :
GUYS - Let's use this as our post going forward.
I think it's time to retire "ddsi is about to run."
Posted by brackep on :
quote:Originally posted by madmoney: it was great that the company agreed to this session however the lack of any serious consideration for a buy back and the statement that the board of directors is considering an R/S does not entice me to invest further in this company at this time. i do appreciate the upfront and honest feedback. my thanks to the company and all who made this session possible.
I did not read anything about
"... the statement that the board of directors is considering an R/S ..."
Posted by brackep on :
quote:Originally posted by JIF: GUYS - Let's use this as our post going forward.
I think it's time to retire "ddsi is about to run."
Good idea JIF Let's do this !
Posted by madmoney on :
quote:Originally posted by DDSICGM: Regarding Question #1: As we have stated in the past, a R/S is being considered by the BOD as a possible option if it is in the best interests of the Company and the Shareholders.
Posted by timmins4 on :
Jif, thanks for all your effort - this really was quite an accomplishment. I can't say that I feel good about all that was said, but again, I'm impressed that management took the time to address the shareholders.
Posted by brackep on :
my mistake madmoney ...
but don't forget the:
"... if it is in the best interests of the Company and the Shareholders."
Posted by brackep on :
Question 3:"Do We Have Deals in Work"...the Answer is YES...but we cannot comment on specifics due to non-disclosure and security requirments.
Well ... they have Deals/Contracts in work !!!!
Posted by brackep on :
Question 16: "R&D Projects"; We have announced NAVALOOP, which is manufactured by Navatech. This is just one of several products, including the EVIDPRO Bag series, that we are developing and testing. Tapes and Labels are constantly being refined to accommodate new surfaces and applications. WE CAN'T Talk about some of the other exciting products until it is time.
So we know they have/are making some exciting products !
Posted by quickpicker on :
Great job on setting this Q & A session up. The replies were somewhat vague but them taking the time is something positive on its own. Hope fully we can get questions answered more in depth in the future. Thanks for setting this up again. I appreciate it.
Posted by LeeroyDollar on :
Great work JIF, breckep, and all involved. Thank you! Your efforts are greatly appreciated. I wish this sort of thing would happen more often for several of the stocks that I own, or am considering buying.
Though I'm not very inspired by some of the answers, it is very nice to know that they were willing to participate, and offered to answer follow up questions.
Posted by Chipmunk2k on :
quote:Originally posted by DDSICGM: Our next expo is ASIS in September in San Diego, followed closely by IACP in October, and an Intermodal Show in November...we are busy!
The company I work for (Lenel) has a big booth at ASIS every year. I am usually there as well. I look forward to finding the DDSI booth while im there...
-Matthew
Posted by indef on :
quote:Originally posted by madmoney: it was great that the company agreed to this session however the lack of any serious consideration for a buy back and the statement that the board of directors is considering an R/S does not entice me to invest further in this company at this time. i do appreciate the upfront and honest feedback. my thanks to the company and all who made this session possible.
madmoney, I'm on the same boat with you. Really appreciated to JIF and all - I have clear "DDSI" picture now. I’m holding it from 2005, did lots of DD and did have guts about. Now - with CDs continue to the blue skies and ignoring of shareholders interest I don't see any value to keep my investment in - I'll be dump 30 million shares as soon as possible (would like to highlight - DUMP - not sure that will be easy - any takers right now?). Thanks to all and good luck to believers.
Posted by ABEX TRADER on :
You will not have any problem unloading shares at .0001,but Ithink what will happen most likely is hat this shall get a pop up before any RS takes place.
My logic is this: Why would they possibly do an RS at this pps.They willwait till the market drives it up and then announce they shall do a RS.I'd hold your shares as they did not say they would,but did say they are thinking of it as an option.
I do not think this co. has any value now ,but they have value on paper which moght drive the pps up when they announce Earns.
I wish I had never heard of DDSI,but I do think it will get bounced up next month or in October then they will announce a RS.
On the Q&A I saw no surprises as I knew theye would say the NDA's were the reason for the non-PR's from the co..They may announce this new NAVALOCK and I hope it brings them attention,but nothing is really going to shake this co. to the Penny level I bet.You never know about these cos. even if the CEO talked.
There were really no surprises except you cannot believe anything that is rumour on these BB's with this co. as they were said to not rvrn been considering an RS.
Hopefully we can dump shares llong before they make that BS move.
And I think it will workout the wy I said.Why would they do a RS at this pps.They will wait till it goes up then announce it and split the shares midway down from that like somne other cos. I have seen do.
"Remember he said they were consideering it as an option,not that they are going to do one" Another factor is when they might do one.
This co. has been at this level before and has pulled out of it and they may just do it again.That is the only reason I am holding my shares.
Any number of thngs may happen next month when they have Earns released,announce a new prdt. or if they are enlightened put out a PR with substance.
I knew this was going to be BS ,but I went for it anyway!
Posted by ArmySGT on :
the only thing that bothers me is like Squire38 stated, why can't they tell us at least how much they are getting for a contract deal without specifying who (Dept of Defense, etc.) when... obvious, because no one else in the same field seems to have problems with the publicity and with the stuff they are advertising, nothing is obviously secret..I mean, the only business anyone seems to know about is Wal-Mart..Hell China owns Wal-Mart. If its illegal business..hell as long as they dont tell me who, and just how much and when is fine with me. I am going to research from my end. Ultimately its cool they took the time to show up, wonder if we can get it in the chat forum next time so they can see the questions real time because I think they were kind of baffled with all the stuff popping up when they posted something and lost track of questions that couldve easily been answered in better detail, just give me a time and date and hopefully I can be there this time during not after. GLTA
HOOAH
Posted by ArmySGT on :
and on top of that they do tell us through their website some of their members so its not like its a secret on who uses their products, so why not tell us that they have these supposed sweet deals going through. Hell the more they advertise the more revenue they can get through shareholders also
Posted by dalton05 on :
IMHO - this company has been at these bottom levels for a long time and believe it's going nowhere any time soon.I think there are a few people that would agree that all this Q & A stuff is a bunch of hogwash and this company is being pumped.
Posted by MoneyMoneyMoney on :
Do not tell whom is buying what but what is being bought from say inventory. For instance 10k locks, 200k tamperproof evid bags. We've got to know something as investors in a company no matter what its listed with.
Its time to reward the investors somehow in some manner.
Posted by ABEX TRADER on :
Are you people crazy thinking an RS is going to be good for your $$ or are you pumpers being paid?
Write to them and strongly tell them you are againd the move before they get anything substantial going.
Then when it fly's announce or discuss the possibilities of doing one.As of now the shares are worthless.Next month there might be a runup on Earns news.After that they may consider doing an RS.
GL with thinking it would benefit you and this co. at this point.
Posted by ed19363 on :
Sorry, folks. After reading the answers to the questions, I can only see this stock "flying" is into the ground. Think it's called a "plane crash". If they have any idea that a R/S is a healthy thing, they have a lot of learning to do. Meanwhile, I wouldn't touch this with a long pole. Good luck to those of you who have already been sucked in.
Posted by ABEX TRADER on :
When they have another of these and if they do a RS before it goes up again then I would like to see how much faith people have in Toni & Crew then.
Man,I'd hate to work for these guy if they treat their shareholders like this imagine the workers.Min,Wage and bare bene's. And they give themselves pay raises and Vacations.
Gotta luv em'!
Posted by Peterx on :
THANKS JIF!!!!!! Great job!!!
Thaks Tony Shupin and Michael Pellegrino!!!
PATIENCE!!!!!
Posted by JIF on :
Well, I think they were very honest with us. I think they had a positive attitude, but were NOT pumping their company.
I am going to keep this stock and I am going to wait for the next 10Q. I think the next 10Q (presumably being released on or about August 20th) will be as good or better than the last.
I'm in long term.
Posted by FARIMI on :
Does anybody know, on what depends the proportion of a reverse split?
Posted by ed19363 on :
Doesn't matter. ANY reverse split is NOT GOOD. Even 1 for 2.
Posted by Rasica on :
I'm sure the MMs are very afraid of this stock taking off and over the squeeze trigger points. So this constant rumination of R/S is silly...!
Posted by ABEX TRADER on :
quote:Originally posted by Rasica: I'm sure the MMs are very afraid of this stock taking off and over the squeeze trigger points. So this constant rumination of R/S is silly...!
So are you saying they will pull one or not and if so will they pull one before a runup?
I am just to tired after reading everything right now.
I was hopeing they would have a plan to come out with some good news in the short term to create interest and then pull a RS as I would think one done here is pretty ludicrous,but then again they really do not care if they pull ne anyway.
Like another said:NO RS IS GOOD AND THE CFO & CEO should know they are counter productive.
There was not massive dumping today like you might expect.There are only those that follow this BB though and some do not know what was said.This after all is not published,but does reach the BB's!
I had thought an RS was not in the plans before and I know they had been looking at the ptions,but not at this time .
If an RS is so productive for Investors why ,if they are going to do it,are not the officers in the co, buying up shares? They know it would be counterproductive and we would see this sink right back to it's breakout RS point again.
What a show!
Posted by ABEX TRADER on :
quote:Originally posted by MoneyMoneyMoney: Do not tell whom is buying what but what is being bought from say inventory. For instance 10k locks, 200k tamperproof evid bags. We've got to know something as investors in a company no matter what its listed with.
Its time to reward the investors somehow in some manner.
$$-Yeah and they hid behind he NDA's like it would matter that the public was told about Deals.
In soome instances I can see it,but for others I cannot.
What would it hurt to have them say that CA.Dept or any Gov't Dept. has decided to use their Evidence Bags? What is someone going to break in and stteal their Bags or are their Locks on them,LOL!
Yeah,it is a perfect sham to me run from the MM's. I hope they wil run it up to grab the shares and sell them back lower again. That is what they have been doing and it has been done a few times.
Looks like we will not get PR suppport from the Sea Girt or maybe we will.Like from the Sea ehich is where the pps is heading unless they are on the side of the Investors and do something.
GL
Posted by Rasica on :
Abex.......For the most part, I believe you answered most of the reasons why they would not do an R/S. The most important at this level is CD conversion and we are definately a long way from a higher exchange. If you want to see a company trying to pass pure bullshiz to share-holders about jumping onto a higher exchange (IMHO), go to any CSJJ board or study the background. To me its a carnival act and every share-holder has insight, because they were told their rings landed on top of every pop bottle they threw it at(while warming up). Then when they had to pay money to try to win the Teddy Bear...their rings always fell off the pop bottles. Such is CSJJ for example (IMHO), they get to buy in at .0002 and then they're allowed to sell at .0001...isn't that nice of them LOL.
I think DDSI today was painfully clear about the realities of a growing company and the reality of CD conversion. So what..its all reall business....If someone wants to play Carnival...seek out CSJJ...they'll blow smoke up your *## until the cows come home!
Posted by Squire38 on :
All my multi-millions are for sale at 0.0002, luckily it is darn near my average. Hopefully I don't have to lower the sell to 0.0001. I'll be nice and try (forever probably) to sell at the ask. Hopefull they go in one day as I would hate having to sell them over weeks and getting too many comissions.
Even though they ight be a good company it seems to me they are a poor stock. Live and learn.
Posted by SYGY on :
thanks guys ,girls this ws interesting to say to say the least!!!i've held 3.5 million{not alot but who knows?} for months of this and will keep them for long term!!i wish every company did more of this!!!
Posted by chevon2020 on :
Why does everyone say a R/S is not likely. PAIM did one I think at .0001 so it can happen.
Posted by Rasica on :
The CEOs of DDSI haven't determined that a R/S will benefit share-holders.
[ July 12, 2006, 00:02: Message edited by: Rasica ]
Posted by JIF on :
Look, everyone discusses the possibility of an R/S.
So, when they said that they discuss it with the board to determine if it is in the best interest of the company and it's shareholders, they are simply being honest.
No honest answer could ever be: "we will never do it," or "we will do it for sure."
So, I'm perfectly fine with the answer.
Posted by Squire38 on :
I'd been happy with: "For the near future a R/s is not an option. Further down the road, we might look at a R/S or possible buyback program."
Their answer did not go over well with me. I basically read that they would rather R/S than buy-back, which is great for the company but sucks for us.
Posted by Schwabie on :
Remember that they would do a reverse split if / when pps are higher.. they are very low right now. High volume... I think Q & A session started a massive selloff since yesterday...
Posted by fishfarmer on :
We've seen'em come weve've seen'em go but I believe this one will be around for a long long time boys and girls. Posted by Schwabie on :
In my opinion it will just run out of the blue... it always does it.. no PR or anything... do your DD check past seems to run on no news ,...
Posted by Schwabie on :
Remember it has to run on no news or delayed news since they do not PR fluff and only 1 PR in a few months..
Posted by indef on :
CDs are in action - look at these 9mil trades...
Posted by stuckholder on :
Finally, a day with some decent volume. Posted by JIF on :
quote:Originally posted by Squire38: I'd been happy with: "For the near future a R/s is not an option. Further down the road, we might look at a R/S or possible buyback program."
Their answer did not go over well with me. I basically read that they would rather R/S than buy-back, which is great for the company but sucks for us.
Squire - to be honest, I agree with you. I thought it really sucked that the very first answer out of the gate was about the R/S - and an answer which none of us like to hear.
But they were being honest, and we should consider all the answers.
And, let's remember, they didn't say they WANTED to do an R/S.....only that they consider their options with the board.
By the way - I DO like that they have a board of directors. That's always good news.
Posted by brackep on :
let's not forget they have deals/contracts in the work !!!
Posted by JIF on :
Volume is a good thing. Hopefully we can knock around the MM's a little bit.
Posted by JIF on :
Clearly, there are people on this post who have become impatient. And I understand it is not general behavior for a penny trader to hold anything for more than a day or two. So, I'm not surprised that people are moving around.
Also, there are people on the post who are holding for a longer term. I'm one of them. I'm looking forward to the second quarter numbers. I think they will be good numbers. And I think we'll see another period of high volume and interest before the numbers come out. Hopefully, we can get up into the .001's or .002's.
Posted by brackep on :
long here too
Posted by Schwabie on :
I agree. No point in panic selling.
Posted by buzzygresham on :
i am a long too. I was actually a little diasappointed in some of the answers. They were short, vague, and i dont really know anything new now except that they are thinking RS which is never good. I wont panic sale but if i find something better i may have to call it quits for now on ddsi
Posted by megahead34 on :
long here too.
Posted by JIF on :
Nice boys. Nice.
Posted by JIF on :
The MM's want my shares. They'll have to look elsewhere.
Posted by JIF on :
Somebody put in a $50 order at .0003. Let's see if we can't start a riot.
Posted by ABEX TRADER on :
God,it looks like it is going to flatline at .0001! Yeah,they may be getting all my shares as I am losing faith in this POS.
For those hanging on I hope they pulloff a miracle because that is what is needed.
They are not making anything any easier for those holding this.
Hope you guys are stock wizards and know it will rebound.As of this moment it looks slim to none.Things can turn,but the co. does not seem to want to help.It's up to the MM's and the market.
Are there any serious buys going through?
Posted by JIF on :
That is a lot of volume guys.
Posted by Schwabie on :
I personally am looking for 10Q PR
Posted by JIF on :
Well, the MM's will hold down the stock so they can accumulate. But, at some point, they will get full and push the run.
I think the high volume might be just what the doctor ordered.
Posted by InM on :
but no movement. Posted by JIF on :
Mt too Schwabie. The quarter closed 12 days ago. They are putting together the 10Q right now. We should see it in about a month.
That's soon enough. I can wait that long.
Posted by JIF on :
quote:Originally posted by InM: but no movement.
Yes, but hopefully people are jumping ship at .0001 and the MM's are accumulating at those same levels....and filling up.
Posted by fishfarmer on :
Looks like ETRD bought them all and they are asking .0003.
Posted by ABEX TRADER on :
Yeah,I will believe it when I see it there!
I hope it runs to a penny for all of you!If this thing runs soon then maybe Pigs do fly,LOL!
Posted by ed19363 on :
Looks to me like the MMs are gonna short this sucker out of existence. Can you believe .00000001??
Posted by hairguy on :
There is lots of security problems in the US so a company like ddsi could and will do well just have faith, we all need this one.
Posted by gatorhistory on :
you guys that are panic selling are being ridiculous.
positive revenues, and the chance to become profitiable for a pink in the next few quarters? Get real, you don't find fully reporting companies like this every day.
A r/s becomes a strong option if/when a company like this gets ready to move to a bigger exchange, that's when it's good for the company and/or shareholder. That means talking a MUCH higher pps for the stock and a chance for significant investment to be made in to the company. If you didn't like their answer about it being a possibility, maybe you should try a different stock, like CSJJ or QBID where they lie to you every day. At least least Shupin is being honest about things.
As for contract silence in dealing with the government or someone else...obviously you guys have never done businesss with the government - it's better to be silent and let the stock sit there then have them pull the contract and do business with someone else because you opened your mouth prematurely.
I will also add that I will continue to hold, and to buy all of your shares I can at 1. :-p
Posted by indef on :
quote:Originally posted by gatorhistory: you guys that are panic selling are being ridiculous.
positive revenues, and the chance to become profitiable for a pink in the next few quarters? Get real, you don't find fully reporting companies like this every day. <rest snip>
DDSI was never a revenue play... good luck
Posted by dalton05 on :
This stock has done nothing lately,I would like to see some numbers out for this company then i will believe.I think what we have here is a few people trying to pump the chit out of this.Lets start seeing some numbers not just hear say
Posted by gatorhistory on :
read the previous 10q.....fully audited financials tell the story.
Posted by CTMum on :
Not sure if this is the new DDSI board or not.
Is anyone getting filled at .0001?, just for giggles I have a small order in since this morning.
Posted by gatorhistory on :
no - unfortunately. the 100 share trade earlier indicates MM's are still looking to buy up shares from whoever will sell at 1, after that...who knows.
Posted by CTMum on :
Thanks gator, I saw that 100 and didn't know what that was the signal for.
Posted by Schwabie on :
Signals between MMs... 100 > I need shares 200 > I need shares badly but dont take it down to get em 300 > Take the price down to get shares.... 400 > Trade it sideways based on Supply and Demand 500 > Gap one way or the other
Posted by fishfarmer on :
ETRD still at top of bid, really loading up on this.
Posted by JIF on :
quote:Originally posted by dalton05: This stock has done nothing lately,I would like to see some numbers out for this company then i will believe.I think what we have here is a few people trying to pump the chit out of this.Lets start seeing some numbers not just hear say
You want to see some numbers? You must be new to this post. Check their 10Q's on their web site, and wait for the next 10Q which will be out August 22ndish
Posted by JIF on :
quote:Originally posted by CTMum: Not sure if this is the new DDSI board or not.
Is anyone getting filled at .0001?, just for giggles I have a small order in since this morning.
This is the new board. Post here from now on. Read pages 1-3 to get caught up on the Q&A provided by DDSI CEO and CFO earlier this week.
Posted by JIF on :
Good, let's hope they load up and get full. Then they'll turn around. Maybe they are loading up in anticipation of the 2Q 10Q.
Posted by FARIMI on :
JIF! looks like you are very well informed,how did you know about the 10Q?
Posted by FARIMI on :
I whish I can have the same faith you do, but after 5 years waiting for this crap go somewhwere is very hard. Unless I work there and know is going deep, so I will try to pump it up!
Posted by JIF on :
R U kidding? They report their quarterly statements right on time.
Revenues for the three months ended March 31, 2006 of $870,964 increased $722,089 or 485% from the three months ended March 31, 2005 (restated). DDSI generates its revenues through software licenses, hardware, post customer support arrangements and other services. The increase in DDSI's revenue is attributed to the purchase of CGM Applied Security Technology, Inc in March, 2005.
Cost of revenue for the three months ended March 31, 2006 was $293,342 an increase of $248,640 or 556% from the three months ended March 31, 2005 (restated). The increase was attributable to the purchase of CGM Applied Security Technology, Inc in March 2005. Cost of revenue sold as a percentage of revenue for the three months ended March 31, 2006 was 34% of total revenues.
Operating expenses increased $401,341 or 139% during the three months ended March 31, 2006 versus the three months ended March 31, 2005 (restated). This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
Research and development for the three months ended March 31, 2006 was $26,524 compared to $3,848 for the same period prior year for an increase of $22,676 or a 589% increase, which was due in part to the purchase of CGM Applied Security Technology, Inc in March 2005.
The net (loss) for DDSI increased 8% for the three months ended March 31, 2006 to $(1,897,872) from $(1,751,701) for the three months ended March 31, 2005 (restated). This was primarily due to the increase in operating expenses.
The Company plans to spend the majority of it's time and efforts on increasing the revenue and marketplace of its wholly owned subsidiary, CGM Applied Security Technologies, as it feels that there is a much greater potential for growth of the product line of CGM. In order to accomplish this, the Company has hired additional sales people and is increasing its marketing budget in order to expand the awareness of CGM's product line. In addition, the Company has begun a complete revamping of the company's infrastructure in order to make it better able to respond to the need of its customers and to give management the reporting it needs on a timely basis.
Posted by JIF on :
Here is the latest one: Record Revenues Increase more than 800% from Prior Year
SEA GIRT, NJ (April 20, 2005) – Digital Descriptor Systems, Inc. (DDSI:PK) – an industry leader in the development of Homeland Security-related products – today announced audited results for the fiscal year ended December 31, 2005. Record revenues grew more than 800%, to $3,335,631, from the 2004 year end report of $412,052. Gross profit rose 506%, to $2,226,727, from $367,270 for fiscal 2004.
In March 2005, DDSI acquired Somerset County, NJ-based CGM Applied Security Technologies, Inc., a leading manufacturer and distributor of various Homeland Security products.
“Our sales and profit numbers continue to improve steadily, from quarter to quarter,” says Anthony Shupin, CEO of DDSI. “With just 10 months of financial results since our acquisition of CGM, there’s every indication the business strategies we set in motion in March 2005 are extremely effective. We’re currently in the midst of a very strong turnaround.”
Michael Pellegrino, DDSI’s CFO, notes: “We continue to utilize planning and discipline to carefully navigate the company through this early stage of growth. EBITDA (earnings before interest, taxes, depreciation and amortization) losses of $220,166 for the 10 months since the acquisition indicate that we may have come close to breaking even in cash flow had we had the full year.”
About Digital Descriptor Systems, Inc.
The company, based in Sea Girt, NJ, develops and markets integrated enterprise-wide image
applications specifically designed for criminal justice organizations. Customers include states, cities, counties, corrections, justice, and public safety agencies. Additional information is available online, at www.ddsi-cpc.com.
Its subsidiary, CGM Applied Security Technologies, Inc., based in Somerset, NJ, is a leading manufacturer and distributor of Homeland Security products, including indicative and barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers, as well as a number of highly specialized authentication products. Additional information is available online, at www.cgmsecuritysolutions.com. Posted by JIF on :
Also,
Check out the powerpoint presentation about the company at:
Once a month? come on man!! that was last year!
Posted by JIF on :
Not true. Go to the web site. I agree they have been bad since May, but there was one released every month up to May.
Posted by JIF on :
Actually, 2 in March and 2 in May
Posted by dap123 on :
MM's wont get my shares this company is legit. Patience iwanna load up like the MM's at this price. i'm not worried about no r/s. Spending a few hundred dollars that can turn into many's thousand down the line is what i like. iwanna try and get some more shares at .0001 please sell guys more shares for me.
Posted by dap123 on :
This is a major shake i seen it before price may not bump up for months but it will.
Posted by indef on :
quote:Originally posted by dap123: MM's wont get my shares this company is legit. Patience iwanna load up like the MM's at this price. i'm not worried about no r/s. Spending a few hundred dollars that can turn into many's thousand down the line is what i like. iwanna try and get some more shares at .0001 please sell guys more shares for me.
never knew that dilution = accumulation... think before spend even "few hundred dollars" and anyway - good luck to you...
Posted by JIF on :
They aren't diluting. They tell you right on their web site how many shares they have outstanding. And it's been the same for a while now.
Posted by indef on :
quote:Originally posted by JIF: They aren't diluting. They tell you right on their web site how many shares they have outstanding. And it's been the same for a while now.
I was sure about 5 billion OS before May 5th and after - boom - 7.4 billion... hey, not bashing - just waiting for PPS to go above .0001 - need to upload with min loses...
Posted by dalton05 on :
This thread is starting to sound like a bunch of school girls fighting for the same guy.I don't want to see numbers out from March of 2005 in stock terms that was a lifetime ago.I want to see numbers from this quarter.
Posted by gatorhistory on :
they report quarter to quarter - you have to wait until August for new numbers. As for the O/S count - they are very good about updating the number on their website. If you don't want to wait for that either, call the stock transfer agent and they will tell you. I contacted them last week, it is, currently, the same O/S as listed on their website.
GLTA
Posted by JIF on :
big volume again today. I think I'm happy with lots of volume rather than none.
By the way, would someone post the Stocks.com chart that shows accumulation? I'd like to see if the accumulation trend is still growing.
Posted by JIF on :
quote:Originally posted by dalton05: This thread is starting to sound like a bunch of school girls fighting for the same guy.I don't want to see numbers out from March of 2005 in stock terms that was a lifetime ago.I want to see numbers from this quarter.
O.K., well, the second quarter just ended. And they are putting together the numbers. You'll see the SEC 10Q filing soon.
Based on their past turn around, it takes their accountant about 4 weeks to pull together the financials and another two weeks for the auditor to sign off. So, we should see 2nd quarter numbers on or about August 15.
Posted by ABEX TRADER on :
Most all of the Vol. is panic selling and they will shakeout the weakhands before anything happens.
No one shall buy this unless there is a marked development which is unlikely. Even the 10-Q Earns are offset by the CD Dilution. There is plenty of CD's being turned if anyone has noticed.They want to get theirs before it goes to be wirth even less if there is the RS.
I still have plenty of Shares as there is time before anything happens IMO. Might be tomorrow for all we know.
I know this is a POS! The co. will not even buy their own shares and that says a lot.
I am hopeing for a upward move allso,but I am getting rather impatient because I might be able or better off getting my $$ and waiting for a triple through something like an Oil concern.
The Q&A was uneventful so I am not surprised by any of the answers. I was hopeing they would not hode behind the NDA's because there are Gov't and public contracts made by dozens of security cos. which report contracts.This guy wants you to believe they are CIA or something. Waht is an Evidence Bag Contract going to hurt to disclose or many of their prdts..
This is pure BS and they are increasing their shares,but have not increase them on their site yet.Hard to keep track of the conversions.
So it's a big chance we are taking,but as for a RS happening I don't think it will until after the 10-Q,but you do not know like everything else with this POS!
GL!
Posted by gatorhistory on :
Ignore the bashers is my advice. Call the stock transfer agent for the company and they will tell you how many shares are outstanding as of today. The only way to know and to have faith in what you are investing in is to do the DD yourself.
Transfer Agent: Continental Stock Transfer & Trust Company New York, NY 10004
GLTA
Posted by FARIMI on :
Volume is to low! are the people in a happy friday?
Posted by ABEX TRADER on :
why the vol. is low? Are they celebrating or something oe have they taken the day off.
Has the selling stopped or is it halted?
The Vol. the last few days is really not much for a amount point of view. 100Mshrs is only what $10K.That is nothing for a stock.
So you figue what 50K traded.That is peanuts.
I am still holdung this POS and call me whatever you want.It's still a POS. The co. is not thinking of us I kknow that much.
Call them and ask how many shrs. there are "There's a NDA for that too!"LOL!
Posted by FARIMI on :
Hey Tony come on Man, you are causing a civil war between the shareholdres. They're fighting eachother!! Do something, at least lie to us!! dam it!!
Posted by dalton05 on :
I agree with you Abex this is a POS and i think a lot of other people are realizing this and have moved on to other stocks and those who are still pumping this will probably be gone to realizing they are shoveling chit against the tide.I see this this all the time.
Posted by gatorhistory on :
well, it seems more bashers have shown up today. the low volume is an indicator nobody is selling to the MM's at 1 anymore -- which is a good thing.
Again, anyone that wants to know the O/S as of today should call the transfer agent and they will tell you.
Do your own research and DD and THEN invest.
Posted by FARIMI on :
Mayebe MM's realized this co worth nothing!! oh my god!! we are in trouble!!
Posted by gatorhistory on :
quote:Digital Descriptor Systems, Inc. (DDSI:PK) – an industry leader in the development of Homeland Security-related products – today announced audited results for the fiscal year ended December 31, 2005. Record revenues grew more than 800%, to $3,335,631, from the 2004 year end report of $412,052. Gross profit rose 506%, to $2,226,727, from $367,270 for fiscal 2004.
cuz that's a company not worth anything. stop being stupid and trying to scare people. Not many pinks can say they have the above kind of revenues and profits. FULLY AUDITED and REPORTING BTW.
Posted by FARIMI on :
Aja. Gator who's stupid here, you keep posting the same all bull**** everybody know, just wasting space and energy here, shut down your fricking computer and stop pumping this pos, better pump your a... you know what
Posted by FARIMI on :
Actually you need to be stupid to see those numbers you posted, see the pps is going no where and still have the believe this is good, just retire youself, you are not a good pumper, don't see any good results. Whos stupid here ah!
Posted by FARIMI on :
Ah! one more thing! you need to be stupid to think that my posts will scare people, what an idiot! well you need to be stupid to be scare of course! Why you called me stupid first Gator? because you got scare?
Posted by madmoney on :
quote:Originally posted by gatorhistory:
quote:Digital Descriptor Systems, Inc. (DDSI:PK) – an industry leader in the development of Homeland Security-related products – today announced audited results for the fiscal year ended December 31, 2005. Record revenues grew more than 800%, to $3,335,631, from the 2004 year end report of $412,052. Gross profit rose 506%, to $2,226,727, from $367,270 for fiscal 2004.
cuz that's a company not worth anything. stop being stupid and trying to scare people. Not many pinks can say they have the above kind of revenues and profits. FULLY AUDITED and REPORTING BTW.
what about the net loss from operating activties of 1.7 million+ and the accumulated deficet of 27 million and this>>>>>>>The Company is in default of $1,733,478 of outstanding debentures. Although the debenture holders have not pursued their rights under such debentures, there can be no assurances that such rights will not be exercised.
if you want to post facts then post ALL the facts! or maybe the whole 10Q for 5/17/06>>>>>>> read it and weep!!!>>>>>>>>>>>>FORM 10-QSB U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
|X| Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2006
OR
|_| Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _______________ to _______________
DIGITAL DESCRIPTOR SYSTEMS, INC. (Exact name of registrant as specified in its charter)
Delaware 23-2770048 ------------------------------- ---------------------- (State or other jurisdiction of (I.R.S. employer incorporation or organization) identification number)
2150 Highway 35, Sea Girt, New Jersey 08750 (Address of principal executive offices) (Zip Code) Registrant's Telephone number, including area code: (732) 359-0260
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes |X| No |_|
State the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date.
Outstanding at Class of Common Stock May 10, 2006 --------------------- -------------------- $.001 par value 7,868,016,065 Shares
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT YES |_| NO |X|
Digital Descriptor Systems, Inc. and Subsidiary Condensed Consolidated Financial Statements For the Three Months Ended March 31, 2006 and 2005 (Restated)
(Unaudited)
Condensed Consolidated Unaudited Financial Statements: Condensed Consolidated Balance Sheets for the Three Months Ended March 31, 2006 and March 31, 2005 (restated) Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2006 and March 31, 2005 (restated) Condensed Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2006 and March 31, 2005 (restated)
Notes to Condensed Consolidated Financial Statements
Digital Descriptor Systems, Inc. and Subsidiary CONDENSED CONSOLIDATED BALANCE SHEETS AT MARCH 31, 2006 AND 2005 (UNAUDITED)
ASSETS
March 31 March 31 2006 2005 ------------ ------------ As Restated Current Assets: Cash and cash equivalents $ 100,709 $ 823,485 Restricted cash -- 50,000 Accounts receivable, less allowances of $60,583 and 38,084, respectively 535,958 98,432 Inventory 426,059 365,963 Prepaid expenses 6,325 1,794 ------------ ------------ Total Current Assets 1,069,051 1,339,674 Property and equipment, net 374,071 410,901 ------------ ------------ Other Assets Deposits 1,730 1,730 Goodwill 4,054,998 4,054,998 Intangible assets, net 179,681 202,178 Deferred financing costs, net 227,213 376,113 ------------ ------------ Total Other Assets 4,463,622 4,635,019 ------------ ------------ TOTAL ASSETS $ 5,906,744 $ 6,385,594 ============ ============ LIABILITIES AND STOCKHOLDERS' (DEFICIT) LIABILITIES Current Liabilities: Accounts payable $ 285,213 $ 202,193 Accrued expenses 316,598 305,634 Accrued interest 806,685 862,332 Due to Officer and director 0 20,115 Deferred income 188,968 169,204 Convertible debentures, net of debt discount 2,042,124 1,608,250 Derivative liabilities 7,220,088 7,328,441 ------------ ------------ Total Current Liabilities 10,859,676 10,496,169 Long Term Liabilities Note payable 3,500,000 3,500,000 Convertible debentures, net of debt discount 1,511,745 1,091,838 ------------ ------------ Total Long Term Liabilities 5,011,745 4,591,838
Total Liabilities 15,871,421 15,088,007
STOCKHOLDERS' (DEFICIT) Preferred stock, $.001 par value: authorized shares - 1,000,000; issued and outstanding shares - none Common stock, par value $.001; authorized 9,999,000,000 shares at; March 31,2006 and 9,999,000000 shares at March 31, 2005; 5,454,943,898 issued and outstanding at March 31, 2006 and 319,466,359 issued and outstanding at March 31, 2005 5,454,944 319,466 Additional paid in capital 11,983,209 19,373,934 Accumulated deficit (27,402,830) (28,395,813) ------------ ------------ Total Stockholders' (Deficit) (9,964,677) (8,702,413) ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) $ 5,906,744 $ 6,385,594 ============ ============
The accompanying notes are an integral part of the condensed consolidated financial statements.
Digital Descriptor Systems, Inc. and Subsidiary CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005 (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2006 2005 ------------- ------------- As Restated INCOME Net Sales $ 870,964 $ 148,875 Cost of Revenue 293,342 44,702 ------------- ------------- Gross Profit 577,622 104,173
OPERATING EXPENSES General and administrative 618,892 259,701 Sales and marketing 44,806 25,332 Research 26,524 3,848 ------------- ------------- Total Operating Expenses 690,222 288,881
LOSS BEFORE OTHER INCOME (EXPENSE) (112,600) (184,708) OTHER (EXPENSE) Interest (732,194) (457,531) Amortization of deferred financing cost (37,225) (37,225) Amortization of debt discount (323,029) (440,755) Change in fair market value of derivative liability (661,020) (630,702) Other income and expenses (31,804) (780) ------------- ------------- Total Other (Expense) ($ 1,785,272) ($ 1,566,993)
NET (LOSS) APPLICABLE TO COMMON SHARES ($ 1,897,872) ($ 1,751,701) ============= ============= NET (LOSS) PER BASIC AND DILUTED SHARES $ (0.00) $ (0.01) ============= ============= WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 3,943,573,535 251,049,692 ============= =============
The accompanying notes are an integral part of the condensed consolidated financial statements.
Digital Descriptor Systems, Inc. and Subsidiary CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005 (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2006 2005 ------------- ------------- As Restated CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) $ (1,897,872) $ (1,751,701) ------------- ------------- Adjustments to reconcile net (loss) to net cash (used in) operating activities: Depreciation and amortization 11,770 -- Amortization of deferred financing cost 37,225 37,225 Amortization of debt discount 323,029 440,755 Amortization of benefical interest 732,194 (217,126) Change in fair market value of derivatives 661,020 630,702 Bad debt expense 7,500 -- Changes in operating assets and liabilities: Accounts receivable (75,465) (29,903) Inventory (11,908) (31,211) Prepaid expense, deposits and other assets (2,435) (1,794) Accounts payable 60,216 64,611 Accured expenses (64,594) (4,140) Accured interest 7,723 182,265 Deferred Income 16,495 (20,249) ------------- ------------- Total adjustments 1,702,770 1,051,135 ------------- ------------- Net cash (used in) operating activities (195,102) (700,566) ------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of Business Assets -- (1,500,000) ============= ============= Net cash provided by (used in) investing activities -- (1,500,000) ------------- -------------
The accompanying notes are an integral part of the condensed consolidated financial statements.
Digital Descriptor Systems, Inc. and Subsidiary CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005 (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2006 2005 ------------- ------------- As Restated CASH FLOWS FROM FINANCING ACTIVITES Due to officers and directors -- (6,285) Net cash provided by (used in) financing activities -- (6,285) ------------- ------------- NET (DECREASE) IN CASH AND CASH EQUIVALENTS (195,102) (2,206,851) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 295,811 3,080,336 ------------- ------------- CASH AND CASH EQUIVALENTS - END OF PERIOD $ 100,709 873,485 ============= =============
The accompanying notes are an integral part of the condensed consolidated financial statements.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
Note 1 - Description of Business
Digital Descriptor Systems, Inc., incorporated in Delaware in 1994, develops, assembles and markets computer installations consisting of hardware and software, which capture video and scanned images, link the digitized images to test and store the images and text on a computer database and transmit this information to remote locations. The principal product of the Company is the Compu-Capture Law Enforcement Program, which is marketed to law enforcement agencies and jail facilities and generates the majority of the Company's revenues. Substantially all of the Company's revenues are derived from governmental agencies in the United States. CGM is a manufacturer and distributor of indicative and barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers as well as a number of highly specialized authentication products.
Note 2 - Summary of Significant Accounting Policies
Significant accounting policies followed by the Company in the preparation of the accompanying financial statements are summarized below:
Use of Estimates
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.
Revenue Recognition
The Company derives revenue from the sale of hardware, software, post customer support, and other related services. Post customer support includes telephone support, bug fixes, and rights to upgrades. Other related services include basic training.
The Company recognizes revenue upon delivery of the product to the end-user, when the fee is determinable and collectibility is probable. Revenue allocable to post customer support is recognized on a straight-line basis over the period which the service is to be provided. Revenue collected for future services is recorded as deferred income and totaled $ 188,968 and $ 169,204 , respectively, for the three months ended March 31, 2006 and 2005. Revenue allocable to other services is recognized as the services are provided.
Software Development Costs
All costs incurred in the research and development of new software products and costs incurred prior to the establishment of a technologically feasible product are expensed as incurred. Research and development of software costs were $ 26,524 and $3,848, respectively, for the three months ended March 31, 2006 and 2005.
Cash and Cash Equivalents
For the purpose of the statement of cash flows, cash and cash equivalents include time deposits, certificates of deposits, restricted cash, and all highly liquid debt instruments with original maturities or three months or less.
Accounts Receivable
Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. No interest is charged on any past due accounts. Accounts receivable are stated at the amount billed to the customer. Accounts receivable was $ 535,958 and $ 98,432, respectively, for the three months ended March 31, 2006 and 2005 .
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
The carrying amount of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amount that will not be collected. Management reviews all accounts receivable balances that exceed 90 days from invoice date and based on assessment of current creditworthiness, estimates the portion, if any, of the balance that will not be collected. The allowance for doubtful accounts was $ 60,583 and $38,084, respectively, for the three months ended March 31, 2006 and 2005.
Income Taxes
The Company provides for income taxes under the liability method. Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Such differences result from differences in the timing of recognition by the Company of net operating loss carry forwards, certain expenses, and differences in the depreciable lives and depreciation methods for certain assets.
Accounting for Stock Options
Financial Accounting Standards Board issued Statement No. 123 (SFAS 123), "Accounting for Stock-Based Compensation" which provides companies with a choice to follow the provisions of SFAS 123 in determination of stock-based compensation expense or to continue with the provisions of Accounting Principles Board Opinion No. 25 (APB 25). The Company has elected to follow the provisions of APB 25. Under APB 25, if the exercise price of the Company stock options equals or exceeds the market price of the underlying Common Stock on the date of grant, no compensation expense is recognized. The effect of applying SFAS 123 to the Company's stock-based awards results in net loss and net loss per common share that are disclosed on a pro forma basis in Note 8.
Net Loss Per Common Share
Basic loss per share is calculated by dividing the net loss by the weighted average common shares outstanding for the period. Diluted loss per share is calculated by dividing the net loss by the weighted average common shares outstanding of the period plus the dilutive effect of common stock equivalents. No exercises of common stock equivalents were assumed during any period because the assumed exercise of these securities would be anti-dilutive.
Concentration of Credit Risk
Financial instruments which potentially subject the company to a concentration of credit risk principally consist of cash and accounts receivable. Concentration of credit risk, with respect to accounts receivable, is limited due to the Company's credit evaluation process. The Company does not require collateral from its customers. The Company sells its principal products to end users and distributors principally in the United States.
Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and convertible debentures approximates their fair value based on the liquidity of these financial instruments and based on their short-term nature.
Reclassification
Certain amounts at March 31, 2005 have been reclassified to conform to the March 31, 2006 statements.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
Note 3 - Impact of Recent Accounting Pronouncements
In December of 2004 the FASB issued a revision to Statement No. 123, Accounting for Stock-Based Compensation. This Statement supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and its related implementation guidance. This Statement establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for good or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. This Statement focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. This Statement does not change the accounting guidance for share-based payment transactions with parties other than employees as provided in Statement 123 as originally issued and EITF Issue No. 96-18, "Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with selling, Goods or Services." This Statement does not address the accounting for employee share ownership plans, which are subject to AICPA Statement of Position 93-6, Employers Accounting for Employee Stock Ownership Plans. The revisions of this statement did not have a material impact upon the Company's financial statements. The Company reviews the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair market value.
Goodwill represents the excess of the cost of the Company's acquired subsidiaries or assets over the fair value of their net assets at the date of acquisition. Under Statement of Financial Accounting Standards ("SFAS") No. 142, goodwill is no longer subject to amortization over its estimated useful life; rather, goodwill is subject to at least an annual assessment for impairment applying a fair-value based test.
Note 4 - Convertible Debentures
Based on the guidance in SFAS133 and EITF00-19, the Company concluded that the conversion features of it convertible debentures were required to be accounted for as derivatives. The imbedded derivative feature was bi-furcated and the fair market value was determined using a convertible bond valuation model. The derivative instruments are recorded at fair market value with changes in value recognized during the period of change. For further discussion, see footnote #12 regarding restatement.
During May 2001, the Company issued three convertible notes for an aggregate amount of $20,000. The debentures are collateralized by substantially all of the company's assets. The debentures accrue interest at the rate of 10% per annum.
The holders have the right to convert the principal amount plus accrued interest into shares of the Company's common stock. The conversion price in effect on any Conversion Date shall be an amount equal to 50% of the mean average price of the common stock for the ten trading days prior to notice of conversion.
We recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 4,992 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
During September 2001, the Company issued two convertible debentures for an aggregate amount of $400,000. The debentures are collateralized by substantially all of the company's assets. These debentures are in default as they were due on September 30, 2002. The debentures accrue interest at the rate of 12% per annum. A late fee equal to 15% of the accrued and unpaid interest is also assessed during the default period. Interest on the debentures was not paid quarterly, and accordingly accrued interest and late fees payable related to the notes totaling $187,600 is included in the accompanying financial statements.
The holders have the right to convert the principal amount plus accrued interest into shares of the Company's common stock at anytime after issuance. The conversion price in effect on any Conversion Date shall be the lesser of $.08 per share or 50% of the average of the lowest three inter-day sales prices during the ten trading days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 800,000 shares of common stock of the Company at an exercise price per share equal to the lesser of $.36 or the average of the lowest three closing sales prices for the common stock during the twenty Trading Days immediately prior to exercise. The estimated fair value of the warrants of $48,000 was allocated to paid-in capital. This resulting debt discount plus $90,000 of financing charges were amortized on a straight-line basis over the term of the debentures, and were fully amortized at December 31, 2002.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 59,407 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
During 2004, $10,500 of the debenture was converted into 35,000,000 shares of common stock and during 2003, $3,164 of the debenture was converted into 15,818,010 shares of common stock.
In December, 2001 the Company issued three convertible debentures for an aggregate amount of $500,000. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due December 31, 2002. Interest accrues at the rate of 12% per annum through maturity, and increased to 15% per annum during the default period. Quarterly interest payments were not made, and accordingly accrued interest payable related to the notes totaling $210,000 is included in the accompanying financial statements.
The holders have the right to convert the principal amount plus accrued interest into shares of the Company's common stock at any time. The conversion price in effect on any Conversion Date shall be the lesser of $.043 per share or 50% of the average of the lowest three inter-day sales prices during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 1,500,000 shares of common stock of the Company at an exercise price per share equal to the lesser of $.02 or the average of the lowest three inter-day sales prices during the twenty Trading Days immediately prior to exercise. The estimated fair value of the warrants of $90,000 was allocated to paid-in capital. This resulting debt discount plus $77,500 of financing charges were amortized on a straight-line basis over the term of the debentures, and were fully amortized at December 31, 2002.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 388,800 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
In June 2002, a 12% convertible promissory note for $75,000 was issued to two investors. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due in August 2003. The debentures accrue interest at the rate of 12% per annum. A late fee equal to 15% of the accrued and unpaid interest is also assessed during the default period. Quarterly interest on the debentures was not paid, and accordingly accrued interest and late fees payable related to the notes totaling $29,071 is included in the accompanying financial statements.
The holders have the right to convert the principal amount plus unpaid accrued interest into shares of the Company's common stock at any time through repayment. The conversion price is equal to fifty percent of the average of the lowest three (i) inter-day trading prices, or (ii) if the common stock is traded on the OTC Bulletin Board or Pink Sheets, the prices asked by any person or entity acting as a market maker in the common stock during the twenty trading days immediately preceding the relevant date upon which a conversion is effected.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 59,430 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In September 2002, the Company issued secured convertible debentures in the aggregate principal amount of $100,000. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due on September 30, 2003. The debentures accrue interest at the rate of 12% per annum. A late fee equal to 15% of the accrued and unpaid interest is also assessed during the default period. Quarterly interest on the debentures was not paid, and accordingly accrued interest and late fees payable related to the notes totaling $30,000 are included in the accompanying financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $0.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable conversion date.
The Company also issued common stock purchase warrants for the right to purchase 300,000 shares of common stock of the Company at an exercise price per share equal to $.01. The estimated fair value of the warrants was zero. Debt issuance costs of $27,500 were also amortized on a straight-line basis over the term of the debentures and were fully amortized at December 31, 2003.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 79,190 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In January, 2003 the Company issued three convertible debentures for an aggregate amount of $250,000, with simple interest accruing at the annual rate of 10%. The debentures are collateralized by substantially all of the company's assets. These debentures are in default as they were due January 10, 2004. Quarterly interest was not paid and accordingly, accrued interest of $61,415 is included in the financial statements.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
The holders have the right to convert the principal amount and interest due under the debentures into shares of common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $0.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 750,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. Financing costs incurred of $56,750 were fully amortized at December 31, 2003.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 92,225 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In February, 2003, the Company issued three convertible debentures for an aggregate amount of $125,000, with simple interest accruing at the annual rate of 10%. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due February 27, 2004. Quarterly interest due was not paid and accordingly accrued interest of $28,125 is included in the financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $0.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 375,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. Debt issuance costs of $10,843 were also amortized on a straight-line basis over the term of the debentures. Amortization expense during 2004 was $24,307 and the costs were fully amortized as of December31, 2004.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 47,850 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In April, 2003, The Company issued three convertible debentures for an aggregate amount of $125,000, with simple interest accruing at the annual rate of 10%. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due March 31, 2004. Quarterly interest was not paid and accordingly accrued interest of $15,834 is included in the financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $0.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
The Company also issued common stock purchase warrants for the right to purchase 375,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. Debt issuance costs of $20,844 were also amortized on a straight-line basis over the term of the debentures. Amortization expense during 2004 was $38,591 and the costs were fully amortized as of December31, 2004.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 68,250 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In October, 2003, the Company issued two convertible debentures for an aggregate amount of $165,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due October 1, 2004. Quarterly interest was not paid and accordingly accrued interest of $25,988 is included in the financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The debenture holders also received warrants to purchase 1,505,000 shares at an exercise price of $0.01 per share. The estimated fair value of the warrants was zero. Amortization expense during 2004 was $147,469 and the costs were fully amortized as of December31, 2004.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 326,733 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In November, 2003, the Company issued two convertible debentures for an aggregate amount of $45,000, with simple interest accruing at the annual rate of 10%. The debentures are in default as they were due November 27, 2004. Quarterly interest was not paid and accordingly accrued interest of $9,453 is included in the financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 315,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. Amortization expense during 2004 was $47,469 and the costs were fully amortized as of December 31, 2004.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 72,572 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In December, 2003, the Company issued three convertible debentures for an aggregate amount of $45,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. These debentures are in default as they were due by December 3, 2004. Quarterly interest was not paid and accordingly accrued interest of $5,694 is included in the financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 750,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. . Amortization expense during 2004 was $42,349 and the costs were fully amortized as of December31, 2004.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 72,527 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In February, 2004, the Company issued two convertible debentures for an aggregate amount of $45,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. These debentures are due in February, 2005. Quarterly interest was not paid and accordingly accrued interest of $4,906 is included in the financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any conversion date shall be the lesser of (1) $.005 or (2) 67% of the average of the lowest three inter-day sales prices of the common stock during the twenty trading days immediately preceding the applicable conversion date. In addition the debenture holders also received warrants to purchase 315,000 shares at an exercise price of $0.005 per share anytime before February 28, 2009. The estimated fair value of the warrants was $504, which was also recorded as a debt discount. The total debt discount is being amortized on a straight line basis which approximates the effective interest method, over the life of the note. $20,317 of this amount was charged to interest expense during 2004. Additional costs of $12,819 incurred with the issuance of the convertible debentures were recorded as deferred financing cost and are being amortized on a straight-line basis, which approximates the effective interest method, over the term of the debentures. Unamortized costs as of December 31, 2004 amounted to $1,068.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $172,265 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In May, 2004, the Company issued four convertible debentures for an aggregate amount of $250,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. These debentures are due in May 2005. Quarterly interest was not paid and accordingly accrued interest of $19,555 is included in the financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any conversion date shall be the lesser of (1) $.005 or (2) 67% of the average of the lowest three inter-day sales prices of the common stock during the twenty trading days immediately preceding the applicable conversion date. In addition the debenture holders also received warrants to purchase 750,000 shares at an exercise price of $0.005 per share anytime before May 31, 2009. The estimated fair value of the warrants was $5,175, which was also recorded as a debt discount. The total debt discount is being amortized on a straight line basis which approximates the effective interest method, over the life of the note. $35,911 of this amount was charged to interest expense during 2004.
Additional costs of $55,244 incurred with the issuance of the convertible debentures were recorded as deferred financing cost and are being amortized on a straight-line basis, which approximates the effective interest method, over the term of the debentures. Unamortized costs as of December 31, 2004 amounted to $36,829.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $327,750 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In November, 2004, the Company issued four convertible debentures for an aggregate amount of $3,500,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. These debentures are due in November, 2005. Quarterly interest was not paid and accordingly accrued interest of $36,151 is included in the financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any conversion date shall be the lesser of (1) $.0005 or (2) 67% of the average of the lowest three inter-day sales prices of the common stock during the twenty trading days immediately preceding the applicable conversion date.. In addition the debenture holders also received warrants to purchase 10,500,000 shares at an exercise price of $0.005 per share anytime before November 30, 2009. The estimated fair value of the warrants was $5,250, which was also recorded as a debt discount. The total debt discount is being amortized on a straight line basis which approximates the effective interest method, over the life of the note $71,828 of this amount was charged to interest expense during 2004.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
Additional costs of $391,569 with the issuance of the convertible debentures were recorded as deferred financing cost and are being amortized on a straight-line basis which approximates the effective interest method, over the term of the debentures. Unamortized costs as of December 31, 2004 amounted to $376,509.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 2,519,300 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company's balance sheet and is being adjusted to fair market value each reporting period with the change being reported as "other income and expenses" in the statement of operations.
In 2005 the Company converted $643,340 of accrued interest into convertible debentures, $97,402 was recorded as debt discount. In March 2005, $513,431 was repaid on convertible debentures.
Note 5 - Deferred Financing Costs
Deferred financing costs represent cost incurred in connection with the issuance of the convertible debentures. Deferred financing costs are being amortized over the life of the convertible debentures on the straight-line basis, which approximates the effective interest method. The net financing costs were $227,213 and $376,113 for the three months ended March 31, 2006 and 2005, respectively.
Note 6 - Commitments and Contingencies
Operating Lease The Company rents office facilities under a rental agreement that is automatically renewable every four months. The most recent renewal period expired on December 31, 2005.
CGM leases two facilities, one in Somerset NJ and the other in Staten Island New York under non-cancelable lease agreements that end in December 2007 and December 2008, respectively.
Employment Agreements
Anthony R. Shupin, Chairman, President and Chief Executive Officer. Mr. Shupin was re-appointed as Chairman, President and Chief Executive Officer effective February, 2005. On February 25, 2005, DDSI entered into a five-year employment agreement with Mr. Shupin, which entitled him to a base salary of $215,000 per year, which may at the Board of Directors discretion adjust his base salary (but not below $215,000 per year). Mr. Shupin is also entitled to participate in the Annual Management Bonus Plan. As a participant in the Annual Management Bonus Plan, Mr. Shupin will be eligible to receive bonuses, based on performance, in any amount from 10% to 200% of the Base Salary. In addition, Mr. Shupin shall participate in the Management Equity Incentive Plan. As a participant in the Management Equity Plan, Mr. Shupin will be eligible to receive options, which vest over a period of time from the date of the option's issue, to purchase common shares of DDSI. The Company may grant Mr. Shupin, following the first anniversary of the date hereof and at the sole discretion of the Board of Directors, options to purchase common shares of the Company (subject to the vesting and the satisfaction of the other terms and conditions of such options). Mr. Shupin will be entitled to 25 vacations days per year at such times as may be mutually agreed with the Board of Directors. DDSI will provide Mr. Shupin a monthly car allowance of Six Hundred Dollars ($600.00) along with related car expenses.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
Michael J. Pellegrino, Senior Vice President and Chief Financial Officer. Mr. Pellegrino was appointed as Senior Vice President and Chief Financial Officer effective February 25, 2005. On February 25, 2005, DDSI entered into a five-year employment agreement with Mr. Pellegrino, which entitled him to a base salary of $175,000 per year which may at the Board of Directors discretion adjust his base salary (but not below $175,000 per year). Mr. Pellegrino is also entitled to participate in the Annual Management Bonus Plan. As a participant in the Annual Management Bonus Plan, Mr. Pellegrino will be eligible to receive bonuses, based on performance, in any amount from 10% to 200% of the Base Salary. In addition, Mr. Pellegrino shall participate in the Management Equity Incentive Plan. As a participant in the Management Equity Incentive Plan, Mr. Pellegrino will be eligible to receive options, which vest over a period of time from the date of the option's issue, to purchase common shares of DDSI. DDSI may also grant to the Employee, following the first anniversary of the date of the Agreement and at the sole discretion of the Board of Directors, options to purchase common shares of the Company (subject to the vesting and the satisfaction of the other terms and conditions of such options). Mr. Pellegrino will be entitled to 25 vacation days per year at such times as may be mutually agreed with the Board of Directors. DDSI shall also furnish Mr. Pellegrino with monthly car allowance of Six Hundred Dollars ($600.00) and related car expenses.
DDSI has an employment agreement with Erik Hoffer, pursuant to which Mr. Hoffer will be employed as Executive Vice President of the Company for an initial term of three years, which may be extended, and President of CGM Sub for an initial term of one year, which may be renewed for successive one-year terms. Pursuant to the Employment Agreement, Mr. Hoffer will receive a base salary of $200,000, a bonus of 5% of the gross margin sales increase over the prior year's gross margin sales of CGM products and customary benefits and reimbursements.
Note 7 - Stock Option and Other Plans
The Company maintains the 1994 Restated Stock Option Plan (the 1994 Plan) pursuant to which the Company reserved 5,000,000 shares of common stock. The options granted have a term of ten years and are issued at or above the fair market value of the underlying shares on the grant date. The Company also maintains the 1996 Director Option Plan (the Director Plan) pursuant to which the Company reserved 200,000 shares of common stock. Options granted under the Director Plan are issued at or above the fair market value of the underlying shares on the grant date. A portion of the first option vests at the six-month anniversary of the date of the grant and continues over a four-year period. Subsequent options vest on the first anniversary of the grant date. The options expire ten years from the date of the grant or 90 days after termination of employment, whichever comes first.
The following is a summary of option activity under all plans:
Weighted 1996 Total Average Director Number of Exercise 1994 Plan Plan Nonqualified Options Price --------- --------- ------------ ---------- ------------ Outstanding at March 31, 2005 33,000 -- -- 33,000 $.10 - $.365 ========= ========= ============ ========== ============
Outstanding at March 31, 2006 33,000 33,000 $.10 - $.365 ========= ========= ============ ========== ============
Net loss and net loss per common share determined as if the Company accounted for stock options granted under the fair value method of SFAS 123 would result in the same amounts reported.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
Note 8 - Contingency
There were two holders of convertible notes dated December 31, 2001 who could potentially seek similar damages from the Company. Should they seek these damages, the Company could incur additional expense of $71,668. Management feels however, that the likelihood that the other holders will seek the damages is remote, and therefore, no provision for this expense has been made in the accompanying financial statements.
On October 16, 2003, a judgment was entered against the Company by its landlord, BT Lincoln L.P. for breach of lease in the amount of $184,706.76. The Company intends to negotiate a settlement.
Note 9 - Related Parties
A Director of the Company provided consulting services during 2006 and 2005 that amounted to $0 and $4,000 respectively. As of March 31, 2006, the Company owes this Director $0.
Note 10 - Purchase of CGM Applied Security Technology, Inc.
On March 1, 2005, the Company acquired substantially all of the assets of CGM Security Solutions, Inc., a Florida corporation ("CGM"), for (i) $1,500,000 in cash and (ii) a 2.86% promissory note (the "Note") in the principal amount of $3,500,000, subject to adjustment (the "Acquisition"). The assets of CGM were acquired pursuant to an Asset Purchase Agreement among the Company and CGM dated as of February 25, 2005. In connection with the acquisition, the Company and CGM, each entered into an employment agreement with Erik Hoffer (the "Employment Agreement"). CGM is a manufacturer and distributor of barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers.
The principal amount of the Note is subject to adjustment based upon the average of (i) the gross revenues of CGM for the fiscal year ending December 31, 2007 and (ii) an independent valuation of CGM Sub based upon the consolidated audited financial statements of the Company and CGM Sub for the fiscal years ending December 31, 2006 and 2007. In addition, the Company has granted CGM a secondary security interest in substantially all of its assets and intellectual property.
In connection with the Acquisition, the Company entered into a letter agreement with certain of its investors (the "Investors") which extended the maturity date of debt instruments issued on November 30, 2004 until March 1, 2008, and amended the conversion price of the debt that is held by the Investors to the lower of (i) $0.0005 or (ii) 40% of the average of the three lowest intraday trading prices for the Company's common stock during the 20 trading days before, but not including, the conversion date. In addition, the exercise price of the warrants held by the Investors was amended to $.001 per share.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Three Months Ended March 31, 2006 and 2005 (Restated)
Note 11 - Restatement
We have restated the Financial Statements for the three months ended March 31, 2005. and. Based upon the guidance in SFAS133 and EITF00-19, the Company concluded that the conversion features of it convertible debentures were required to be accounted for as derivatives. The imbedded derivative feature was bi-furcated and the fair market value was determined using a convertible bond valuation model. The derivative instruments are recorded at fair market value with changes in value recognized during the period of change.
The impact on the financial statements is summarized below.
March 31, 2005 ---------------------------- As Reported As Restated ------------ ----------- Debt discount and deferred financing costs, net $ 889,544 376,113 Total Assets 6,899,025 6,385,594 Accumulated deficit (21,964,299) (28,395,813) Total Liabilities and Shareholders Deficit 6,899,025 6,385,594
Interest and amortization of deferred debt costs 457,531 898,286 Total Expenses 747,191 1,855,874 Net Loss (643,019) (1,751,701)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following is management's discussion and analysis of certain significant factors that will have affected our financial condition and results of operations. Certain statements under this section may constitute "forward-looking statements". The following discussion should be read in conjunction with our financial statements and notes thereto included in this report.
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2006 COMPARED TO THREE MONTHS ENDED MARCH 31, 2005
Revenues for the three months ended March 31, 2006 of $870,964 increased $722,089 or 485% from the three months ended March 31, 2005 (restated). DDSI generates its revenues through software licenses, hardware, post customer support arrangements and other services. The increase in DDSI's revenue is attributed to the purchase of CGM Applied Security Technology, Inc in March, 2005.
Cost of revenue for the three months ended March 31, 2006 was $293,342 an increase of $248,640 or 556% from the three months ended March 31, 2005 (restated). The increase was attributable to the purchase of CGM Applied Security Technology, Inc in March 2005. Cost of revenue sold as a percentage of revenue for the three months ended March 31, 2006 was 34% of total revenues.
Operating expenses increased $401,341 or 139% during the three months ended March 31, 2006 versus the three months ended March 31, 2005 (restated). This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
General and Administrative expenses for the three months ended March 31, 2006 were $618,892 compared $259,701 for the months ended March 31, 2005 (restated) for an increase of $359,191 or 138%. This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
Sales and Marketing expenses increased $19,474 for the three months ended March 31, 2006 from $25,332 in 2005 to 44,806 in 2006 or a 77% increase. This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
Research and development for the three months ended March 31, 2006 was $26,524 compared to $3,848 for the same period prior year for an increase of $22,676 or a 589% increase, which was due in part to the purchase of CGM Applied Security Technology, Inc in March 2005.
The net (loss) for DDSI increased 8% for the three months ended March 31, 2006 to $(1,897,872) from $(1,751,701) for the three months ended March 31, 2005 (restated). This was primarily due to the increase in operating expenses.
Net cash (used in) operating activities for the three months ended March 31, 2006 and the three months ended March 31, 2005 (restated) was ($195,102) and ($700,566), respectively. The increase in cash (used in) operating activities for the three months ended March 31, 2006 of $505,464. This increase was due in part to the purchase of CGM Applied Security Technology, Inc. in March 2005.
Net cash provided by investing activities was $0 and ($1,500,000) for the three months ended March 31, 2006 and March 31, 2005 (restated), respectively. This increase was due in part to the purchase of CGM Applied Security Technology, Inc. in March 2005.
Net cash provided by (used in) financing activities was $(0) and $(6,285) for the three months ended March 31, 2006 and the three months ended March 31, 2005, respectively. The increase in net cash provided by financing activities for the three months ended March 31, 2006 was $6,285.
DDSI's revenues have been insufficient to cover the cost of revenues and operating expenses. Therefore, DDSI has been dependent on private placements of its common stock and issuance of convertible notes in order to sustain operations. In addition, there can be no assurances that the proceeds from private or other capital will continue to be available, or that revenues will increase to meet DDSI's cash needs, or that a sufficient amount of DDSI's common stock or other securities can or will be sold or that any common stock purchase options/warrants will be exercised to fund the operating needs of DDSI.
Over the next twelve months, management is of the opinion that sufficient working capital will be obtained from operations and external financing to meet DDSI's liabilities and commitments as they become payable. DDSI has in the past relied on private placements of common stock securities, and loans from private investors to sustain operations. However, if DDSI is unable to obtain additional funding in the future, it may be forced to curtail or terminate operations. At March 31, 2006, DDSI had assets of $5,906,944 compared to $6,385,594 on March 31, 2005 a decrease of ($478,650) and shareholder (deficit) of $(9,964,677) on March 31, 2006 compared to shareholder (deficiet) of $(8,702,413) on March 31, 2005, an increase of ($1,262,264). This increase in shareholder (deficit) for the three months ended March 31, 2006 resulted from the net loss for the three months ended March 31, 2006.
Plan of Operations
Acquisition of CGM
On March 1, 2005, DDSI and CGM Sub acquired substantially all of the assets of CGM, for (i) $1,500,000 in cash and (ii) a 2.86% promissory note (the "Note") in the principal amount of $3,500,000, subject to adjustment (the "Acquisition"). The assets of CGM were acquired pursuant to an Asset Purchase Agreement among DDSI, CGM Sub and CGM dated as of February 25, 2005.
The principal amount of the Note is subject to adjustment based upon the average of (i) the gross revenues of CGM Sub for the fiscal year ending December 31, 2007 and (ii) an independent valuation of CGM Sub based upon the consolidated audited financial statements of the Company and CGM Sub for the fiscal years ending December 31, 2006 and 2007. In addition, the Company has granted CGM a secondary security interest in substantially all of its assets and intellectual property.
In connection with the Acquisition, the Company entered into a letter agreement with certain of its investors (the "Investors") which extended the maturity date of debt instruments issued on November 30, 2004 until March 1, 2008, and amended the conversion price of the debt that is held by the Investors to the lower of (i) $0.0005 or (ii) 60% of the average of the three lowest intraday trading prices for the Company's common stock during the 20 trading days before, but not including, the conversion date. In addition, the exercise price of the warrants held by the Investors was amended to $.001 per share.
The short-term objective of DDSI is the following:
The Company plans to spend the majority of it's time and efforts on increasing the revenue and marketplace of its wholly owned subsidiary, CGM Applied Security Technologies, as it feels that there is a much greater potential for growth of the product line of CGM. In order to accomplish this, the Company has hired additional sales people and is increasing its marketing budget in order to expand the awareness of CGM's product line. In addition, the Company has begun a complete revamping of the company's infrastructure in order to make it better able to respond to the need of its customers and to give management the reporting it needs on a timely basis.
To continue to expand the sale and acceptance of its core solutions by offering new and synergistic biometric (a measurable, physical characteristic or personal behavioral trait used to recognize the identity, or verify the claimed identity, of an individual) (i.e. FMS) security products to its installed base in the criminal justice market. DDSI's objective is to expand with these, and additional products, into much larger commercial and federal markets.
Additionally, DDSI plans to execute an acquisition strategy based upon the availability of financing.
We also plan to add additional product lines as a Value Added Reseller. Technologies related to DDSI's core business can bring additional cash flow with relatively small internal development capital outlay.
To enhance its sales of the product line acquired with the acquisition of CGM both domestically and internationally, though the addition of sales representative and distributors
To seek additional products to sell into its basic business market - Criminal Justice - so that DDSI can generate sales adequate enough to allow for profits. New products include biometric devices such as FMS (Fingerprint Matching System) and our integrated digital image and fingerprint package, Identify on Demand.
DDSI believes that it will not reach profitability until the year 2006. Over the next twelve months, management is of the opinion that sufficient working capital will be obtained from operations and external financing to meet DDSI's liabilities and commitments as they become payable. DDSI has in the past successfully relied on private placements of common stock securities, bank debt, loans from private investors and the exercise of common stock warrants in order to sustain operations. If DDSI is unable to obtain additional funding in the future, it may be forced to curtail or terminate operations.
DDSI is doing the following in its effort to reach profitability:
o The Company is putting a great deal of effort to increase the sales of the CGM subsidiary. The Company believes at this time that the most significant growth in revenue will come from CGM and its product lines. o Cutting costs in areas that add the least value to DDSI. o Deriving funds through investigating business alliances with other companies who may wish to license the FMS SDK (software developer's kit). o Increasing revenues through the introduction of Compu-Capture(R), specifically towards kindergarten through twelfth grades, for the creation of ID cards. o Increasing revenues through the introduction of a scaled down version of our Compu-Capture(R) product. o Increasing revenues through the addition of innovative technologies as a Value Added Seller. o Acquiring and effectively adding management support to profitable companies complementary to its broadened target markets.
Liquidity and Capital Resources
We had net losses of ($1,897,872) and ($1,751,701) during the three months ended March 31, 2006 and 2005, respectively. As of March 31, 2006, we had a cash balance in the amount of $100,709 and current liabilities of $10,859,676. The total amount of notes payable and debentures is $7,053,869. We may not have sufficient cash or other assets to meet our current liabilities. In order to meet these obligations, we may need to raise cash from the sale of securities or from borrowings.
The Company's revenues have been insufficient to cover the cost of revenues and operating expenses. Therefore, the Company has been dependent on private placements of its Common Stock and issuance of convertible notes in order to sustain operations. In addition, there can be no assurances that the proceeds from private placements or other capital will continue to be available, or that revenues will increase to meet the Company's cash needs, or that a sufficient amount of the Company's Common Stock or other securities can or will be sold or that any Common Stock purchase options/warrants will be exercised to fund the operating needs of the Company.
The Company has contractual obligations of $8,436,605 as of March 31, 2006. These contractual obligations, along with the dates on which such payments are due are described below:
One Year More Than Contractual Obligations Total or Less One Year ----------------------- ------------ ------------ ------------ Due to Related Parties $ 0 $ 0 $ 0 Accounts Payable and Accrued Expenses 576,051 576,051 0 Accrued interest on loans 806,685 806,685 0 Note payable 3,500,000 0 3,500,000 Convertible Debentures 3,553,869 2,042,124 1,511,745 Total Contractual Obligations $ 8,436,605 $ 3,424,860 $ 5,011,745
The Company is currently in default on several of the convertible debentures that are included in current liabilities. Below is a discussion of our sources and (uses) of funds for the three months ended March 31, 2006 and 2005 (restated), respectively.
Off Balance Sheet Arrangements
We do not have any off balance sheet arrangements as of March 31, 2006 or as of the date of this report.
Item 3. Control and Procedures
(a) Evaluation of Disclosure Controls and Procedures
As of March 31, 2006, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in our periodic reports is recorded, processed, summarized and reported, within the time periods specified for each report and that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b) Changes in Internal Controls.
There was no change in our internal controls over financial reporting that has materially affected, or is reasonable likely to materially affect, our internal control over financial reporting during the quarter covered by this Report.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities:
The Company is in default of $1,733,478 of outstanding debentures. Although the debenture holders have not pursued their rights under such debentures, there can be no assurances that such rights will not be exercised.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits
4.1 Security Agreement dated February 25, 2005 by and between CGM Applied Security Technologies, Inc. and CGM Security Solutions, Inc. (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 4.2 Intellectual Property Security Agreement dated February 25, 2005 by and between CGM Applied Security Technologies, Inc and CGM Security Solutions, Inc. (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 4.3 Letter Agreement, by and among the Company, AJW Partners, LLC, New Millennium Capital Partners II, LLC, AJW Offshore, Ltd. and AJW Qualified Partners, LLC, dated January 31, 2005 (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 4.4 2.86% Secured Convertible promissory Note in the name of CGM Security Solutions, Inc. dated February 25, 2005 (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 10.1 Asset Purchase Agreement dated February 25, 2005 by and among the Company, CGM Applied Security Technologies, Inc. and CGM Applied Security Solutions. (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 10.2 Employment Agreement, dated February 25, 2005, by and among the Company, CGM Applied Security Technologies, Inc. and CGM Security Solutions, Inc. and Eric Hoffer (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 10.3 Employment Agreement dated February 25, 2005 by and among the Company and Anthony Shupin (incorporated herein by reference to the Current Report on Form 8-K, dated April 15, 2005) 10.4 Employment Agreement dated February 25, 2005 by and among the Company and Michael J. Pellegrino (incorporated herein by reference to the Current Report on Form 8-K, dated April 15, 2005) 31.1 Certification by Chief Executive Officer pursuant to Sarbanes-Oxley Section 302 31.2 Certification by Chief Financial Officer pursuant to Sarbanes-Oxley Section 302 32.1 Certification by Chief Executive Officer pursuant to 18 U.S.C., Section 1350 32.2 Certification by Chief Financial Officer pursuant to Sarbanes-Oxley Section 1350
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DIGITAL DESCRIPTOR SYSTEMS, INC. (Registrant)
Date: May 17, 2006 By: /s/ ANTHONY SHUPIN --------------------------------------- Anthony Shupin (President, Chief Executive Officer) (Chairman)
Date: May 17, 2006 By: /s/ MICHAEL J. PELLEGRINO --------------------------------------- Michael J. Pellegrino Senior Vice President & CFO (Director)
I, Anthony Shupin, the Chairman, President, and Chief Executive Officer, of Digital Descriptor Systems, Inc., certify that:
1) I have reviewed this Form 10-QSB of Digital Descriptor Systems, Inc. for the three months ended March 31, 2006;
2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;
4) The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e for the small business issuer and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer is made known to us by other within those entities, particularly during the period in which this report is being prepared;
(b) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(c) Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and
5) The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design of operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.
Date: May 17, 2006
/s/ Anthony Shupin ------------------------------------- Anthony Shupin President and Chief Executive Officer
I, Michael Pellegrino, the Chief Financial Officer, of Digital Descriptor Systems, Inc., certify that:
(1) I have reviewed this Form 10-QSB of Digital Descriptor Systems, Inc. for the three months ended March 31,2006;
(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;
(4) The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e for the small business issuer and have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer is made known to us by other within those entities, particularly during the period in which this report is being prepared;
b. Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
c. Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and
(5) The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design of operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.
Date: May 17, 2006
/s/ Michael Pellegrino ------------------------------------- Michael Pellegrino Chief Financial Officer
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Digital Descriptor Systems, Inc. (the "Company") on Form 10-QSB for the period ended March 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Anthony Shupin, Chairman, President, and Chief Executive Officer, of the Company, certify, pursuant to 18 U.S.C.ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Quarterly Report on Form 10-QSB of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
A signed original of this written statement required by Section 906 has been provided to Digital Descriptor Systems, Inc. and will be retained by Digital Descriptor Systems, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
Date: May 17, 2006
/s/ Anthony Shupin ------------------------------------- Anthony Shupin President and Chief Executive Officer
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Digital Descriptor Systems, Inc. (the "Company") on Form 10-QSB for the period ended March 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Michael Pellegrino, Chief Financial Officer, of the Company, certify, pursuant to 18 U.S.C.ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Quarterly Report on Form 10-QSB of the Company fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
A signed original of this written statement required by Section 906 has been provided to Digital Descriptor Systems, Inc. and will be retained by Digital Descriptor Systems, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
Date: May 17, 2006
/s/ Michael Pellegrino ------------------------------------- Michael Pellegrino Chief Financial Officer
Posted by Max Shrap on :
I've had an order in at .0001 all week and can't get a fill.
Posted by atleast on :
quote:Originally posted by gatorhistory:
quote:Digital Descriptor Systems, Inc. (DDSI:PK) – an industry leader in the development of Homeland Security-related products – today announced audited results for the fiscal year ended December 31, 2005. Record revenues grew more than 800%, to $3,335,631, from the 2004 year end report of $412,052. Gross profit rose 506%, to $2,226,727, from $367,270 for fiscal 2004.
cuz that's a company not worth anything. stop being stupid and trying to scare people. Not many pinks can say they have the above kind of revenues and profits. FULLY AUDITED and REPORTING BTW.
how much revenue came from CDs?
Posted by madmoney on :
quote:Originally posted by Max Shrap: I've had an order in at .0001 all week and can't get a fill.
after you read the above post you may want to cancel your order! it`s up to you.
Posted by FARIMI on :
Oh man! that hurts ah!
Posted by gatorhistory on :
no revenue from cd's...do you KNOW how cd's work?
I've read the complete filings.
Posted by FARIMI on :
I do! all you need is a cd player!! : ) duh!
Posted by Max Shrap on :
Nah, I want to average down to .0002. With a couple contract PRs this thing will go to .0003 and I will make a few bux.
quote:Originally posted by madmoney:
quote:Originally posted by Max Shrap: I've had an order in at .0001 all week and can't get a fill.
after you read the above post you may want to cancel your order! it`s up to you.
Posted by madmoney on :
in my OPINION this will R/S soon. not mutch choice at this point! GL!!!
Posted by Max Shrap on :
Do they have the O/S to R/S? What's the O/S, 18 billion or sumtin?
Posted by FARIMI on :
Madmoney, don't say that if you don't want gatorhistory to call you stupid! : )
Posted by buckstalker on :
What a waste of bandwidth...
Posted by ABEX TRADER on :
quote:Originally posted by Max Shrap: Nah, I want to average down to .0002. With a couple contract PRs this thing will go to .0003 and I will make a few bux.
[/QB][/QUOTE]
Did you miss the Q&A session or are just not admitting to the truth of what he said. There shall be no PR's and they are not going to issue any except to say they are going to a trade show.
They hide behind NDA's which no one else does in Security and expect believe their like a CIA co..
No one is bying at .0002 which means no one is going to push this up.
I am holding a lot of this and had that hope for a long time until the other day.They will NOT PUTOUT CONTRACTUAL PR'S,PERIOD~! They are hiding behind the NDA excuse! Man
Posted by chevon2020 on :
I wonder if they do a R/S will this do what PAIM did after its split. If it does I hope I can get in on the bottom.
Posted by gatorhistory on :
companies that buy these kinds of products would probably not like everyone to know what kind of tamper proofing products they are using. the longer you know what they use, the easier it is to try and find some way around it. NDA's are used everyday in business to protect companies and the products they buy.
As for a possible r/s -- it makes no sense to do that anytime soon -- they have revenue to sustain and grow the company, along with the possibility of further acquisitions to further increase revenue. To perform a r/s for any other reason than to move to a bigger/better stock exchange is the only thing that makes sense in trying to further shareholder value.
I hate to break it to you guys but this is not the typical buy/sell daytrader pink. It's an invest/wait company as it grows. That's right, I know...I said the bad word here in daytrader land....INVEST.
Posted by Squire38 on :
quote:Originally posted by chevon2020: I wonder if they do a R/S will this do what PAIM did after its split. If it does I hope I can get in on the bottom.
PAIM ran because a lot of people sold their restricted shares. Once the restricted shares were sold the brokerage companies realized they were letting the stockholder wrongly sell. The brokerage companies then made the shareholders cover the shares they sold, effectively creating a little short squeeze.
Posted by Max Shrap on :
This may sound crazy, but I think a 100 to 1 R/S may help this stock out. It will put it in a better position to go "legit."
Posted by atleast on :
quote:Originally posted by gatorhistory: companies that buy these kinds of products would probably not like everyone to know what kind of tamper proofing products they are using. the longer you know what they use, the easier it is to try and find some way around it. NDA's are used everyday in business to protect companies and the products they buy.
As for a possible r/s -- it makes no sense to do that anytime soon -- they have revenue to sustain and grow the company, along with the possibility of further acquisitions to further increase revenue. To perform a r/s for any other reason than to move to a bigger/better stock exchange is the only thing that makes sense in trying to further shareholder value.
I hate to break it to you guys but this is not the typical buy/sell daytrader pink. It's an invest/wait company as it grows. That's right, I know...I said the bad word here in daytrader land....INVEST.
what is your INVESTment term for DDSI? I'm in since October last year - is this enough to name this stock a POS?
Posted by quickpicker on :
You guys aren't doing much to bring any type of confidence in bringing in new investors with all this reverse split talk. We all realize it's a possibility and hope it doesn't happen. We all know that these stocks can run for no reason at at any given time with or without news. Lets see what happens after the next financials.
Posted by ed19363 on :
It isnt our job to bring in new investors. That job belongs to the company, so maybe if they want new investors they should quit talking about reverse splits and start concentrating on making the PPS rise. That way it might even become an attractive investment. Sitting at .0001 and answering questions the way they did DOES NOT foster good relations with potential investors. I'll say it one more time: With the latest news and answers we have got, it would take a very long pole to make me buy this POS. And the next financials wont make a bit of difference if there is ANY possibility of a R/S taking the price right back down to .0001. Seen it happen too many times in these pennies.
Posted by ed19363 on :
P.S.: This is not to be considered BASHING. Just a reasonable line of thought for anyone thinking about dropping a few bucks on this. Show me the money (PPS), and I'll invest too.
Posted by Max Shrap on :
That Q&A pretty much did more damage than ANY basher could do.
Posted by Double Diamond on :
quote:Originally posted by Max Shrap: That Q&A pretty much did more damage than ANY basher could do.
Agreed. I hold 3.5 million shares since approx 10 months. The only thing I've seen happening with this stock, is (1) dillution (2) PPS decrease.
It's easy to hide behind your customers and to state that you can't state anything.
By the way : I see some people claiming a RS of 100 would not be a bad thing. 'Know your classics'. A RS is bad in almost any cases for a pinkie or an OTCB. I can't understand that people make such statements. It only confuses newbies. Pls. don't listen to it.
I'm very disappointed by the unprofessional behaviour of this company.
Posted by Double Diamond on :
quote:Originally posted by Max Shrap: Nah, I want to average down to .0002. With a couple contract PRs this thing will go to .0003 and I will make a few bux.
quote:Originally posted by madmoney:
quote:Originally posted by Max Shrap: I've had an order in at .0001 all week and can't get a fill.
after you read the above post you may want to cancel your order! it`s up to you.
I would not consider to average down to 0.0002.
If it goes to 0.0003, you'll not be able to sell at that price. It needs to go to 0.0004 before you'll likely to have success. But by that time everyone will try to sell ...
I regret as well the fact that you state that a RS could be good. What will happen is that they'll start diluting again after the RS. This will bring the PPS down again.
Posted by gatorhistory on :
if you are not investors of this company, or you don't like how they do business, why are you on this board?
The answer is in your posts. Go find as many fully reporting pinks with growing revenues like DDSI and list them here....I doubt you'll find many, if any. For them to state they have thought about a R/S is honest -- if you'd rather they lie to you go jump on the CSJJ board, or QBID for that matter....oops...is QBID even still trading?
Posted by chevon2020 on :
quote:Originally posted by Squire38:
quote:Originally posted by chevon2020: I wonder if they do a R/S will this do what PAIM did after its split. If it does I hope I can get in on the bottom.
PAIM ran because a lot of people sold their restricted shares. Once the restricted shares were sold the brokerage companies realized they were letting the stockholder wrongly sell. The brokerage companies then made the shareholders cover the shares they sold, effectively creating a little short squeeze.
That wasnt PAIM that was PAIV. PAIM just did a R/S and ran to .001 from .0001
Posted by Double Diamond on :
quote:Originally posted by gatorhistory: if you are not investors of this company, or you don't like how they do business, why are you on this board?
The answer is in your posts. Go find as many fully reporting pinks with growing revenues like DDSI and list them here....I doubt you'll find many, if any. For them to state they have thought about a R/S is honest -- if you'd rather they lie to you go jump on the CSJJ board, or QBID for that matter....oops...is QBID even still trading?
Because this is a board where people exchange info, feelings, insights, ... good and/or bad ?
Plus your statement of the R/S : most of these companies were not going to R/S, but still they did at some point in time.
Posted by gatorhistory on :
and how many of those companies had actual growing revenues, with expanding product lines...how many of them were fully/on time reporting companies with audited financial statements? I doubt very many of them can say that.....I've been in the pinks a long time and THAT does not happen very often.
Posted by JIF on :
quote:Originally posted by Max Shrap: Do they have the O/S to R/S? What's the O/S, 18 billion or sumtin?
7.8 billion.
Posted by JIF on :
quote:Originally posted by ABEX TRADER:
quote:Originally posted by Max Shrap: Nah, I want to average down to .0002. With a couple contract PRs this thing will go to .0003 and I will make a few bux.
How can you guys invest in a company when you haven't even looked at their web site? What is your investment strategy? Do you buy when you like the sound of their name?
Good lord! Look, go to their web site! They had 2 TWO TWO TWO PR's in April and May. Historically, they release a pr every month!
How can you dispute this?! It's on their web site! Go read them!
I'm so tired of people saying they don't put out news releases.
And, another thing, what do you mean they don't tell you who their customers are? Again, look at their web site! They have a whole powerpoint presentation that highlights about 100 of their customers!
Good lord! Do some fricken DD ALREADY!
Posted by JIF on :
quote:Originally posted by atleast:
quote:Originally posted by gatorhistory: companies that buy these kinds of products would probably not like everyone to know what kind of tamper proofing products they are using. the longer you know what they use, the easier it is to try and find some way around it. NDA's are used everyday in business to protect companies and the products they buy.
As for a possible r/s -- it makes no sense to do that anytime soon -- they have revenue to sustain and grow the company, along with the possibility of further acquisitions to further increase revenue. To perform a r/s for any other reason than to move to a bigger/better stock exchange is the only thing that makes sense in trying to further shareholder value.
I hate to break it to you guys but this is not the typical buy/sell daytrader pink. It's an invest/wait company as it grows. That's right, I know...I said the bad word here in daytrader land....INVEST.
what is your INVESTment term for DDSI? I'm in since October last year - is this enough to name this stock a POS?
Where did you buy it at? If you bought it at the peak of the last pop, then it's a bad investment for you. If you bought it at .0001 or .0002, then you may be in good shape.
Posted by gatorhistory on :
lol...I bought in at the very bottom -- guess that's why I'm relaxed about this and the potential for it.
Posted by JIF on :
Yeah, I bought last year for .0004. Sold at .0008. It proceeded to move into the .0020's.
I was livid. I waited a long time for it to come back down to these levels. I was patient.
Now I have 32million shares at .0002 and it's all another waiting game.
Only difference, I won't get out at .0008 this time. I'm letting it ride long term.
Posted by atleast on :
quote:Originally posted by JIF:
quote:Originally posted by atleast:
quote:Originally posted by gatorhistory: companies that buy these kinds of products would probably not like everyone to know what kind of tamper proofing products they are using. the longer you know what they use, the easier it is to try and find some way around it. NDA's are used everyday in business to protect companies and the products they buy.
As for a possible r/s -- it makes no sense to do that anytime soon -- they have revenue to sustain and grow the company, along with the possibility of further acquisitions to further increase revenue. To perform a r/s for any other reason than to move to a bigger/better stock exchange is the only thing that makes sense in trying to further shareholder value.
I hate to break it to you guys but this is not the typical buy/sell daytrader pink. It's an invest/wait company as it grows. That's right, I know...I said the bad word here in daytrader land....INVEST.
what is your INVESTment term for DDSI? I'm in since October last year - is this enough to name this stock a POS?
Where did you buy it at? If you bought it at the peak of the last pop, then it's a bad investment for you. If you bought it at .0001 or .0002, then you may be in good shape.
almost same story - bought at .0006 and .0004; sold some... since then averaging down to .00024 with 40 mil shares... not good at all... Major boards (allstock, ihub, hsm, bulls) are holding around 2 bil shares and going to sell immediately if PPS starts to touch .0003... this is reason why I don't see "easy" exit - even in "long" term...
Posted by gatorhistory on :
I highly doubt anybody that is holding this stock, and has been holding it for some time will sell at a paltry .0003 - that doesn't make enough money to make it worth while.
Posted by ABEX TRADER on :
quote:Originally posted by JIF:
quote:Originally posted by ABEX TRADER:
quote:Originally posted by Max Shrap: Nah, I want to average down to .0002. With a couple contract PRs this thing will go to .0003 and I will make a few bux.
How can you guys invest in a company when you haven't even looked at their web site? What is your investment strategy? Do you buy when you like the sound of their name?
Good lord! Look, go to their web site! They had 2 TWO TWO TWO PR's in April and May. Historically, they release a pr every month!
How can you dispute this?! It's on their web site! Go read them!
I'm so tired of people saying they don't put out news releases.
And, another thing, what do you mean they don't tell you who their customers are? Again, look at their web site! They have a whole powerpoint presentation that highlights about 100 of their customers!
Good lord! Do some fricken DD ALREADY!
I suggest you read the PR's again.They really do nothing to entice Investors to come in. I have been and did my DD on the co. before buying and thought they would soon give ssome good PR news of contractual agreements.I even called Tony.
This thing is not going to go anywhere anytime soon except to take away the value of the pps.
As it stands n one is going to buy into a co. that may or may not go into an RS and end right back here.
I think the co. has actually betrayed it's investors while they give themselves pay raises and say they are doing cost cutting.
I might just cash in nd wait for a real co. that is going to go up expotentially without all the back biting this one has.
Your CEO has done nothing to help a bad situation and he is not going to help in the future.
GL!
Posted by JIF on :
First off, he's not my CEO. I've never met him. However, I appreciate his sense of conservativism and honesty.
In terms of your opinion of the company, and it is just one opinion, you're entitled to it. I respect that.
Posted by gatorhistory on :
anyone else still watching the accumulation and rise in money flow in to DDSI?
Posted by JIF on :
Did we really end with the ask on .0003! That's a good thing.
Posted by brackep on :
Are you sure ask is at 0.0003 ?
Posted by RJD2000 on :
I have scotty and they seem to always have the ask at .003 after the close. When mornig comes its back to .0002.
I hope this does something soon.
GLTA
Posted by FARIMI on :
So! who said, they were on time with PR?
Posted by gatorhistory on :
they are not on a PR schedule . . .
Posted by ABEX TRADER on :
Well if you own this cos. stock it is your CEO as he is the rep that is making the decisions where you put your $$ so you should have faith in his ability to make your investment $$ work and entice investors to come in and join the good they are doing.
This co. has done no good since I bought in and now I shall be exiting so I really do not care what he does anymore. I was going to go on and wait,but as others pointed out "FOR WHAT"?
If you think a RS is going to help your wrong unless it's one of those 1% cos. that cn make it work which I strongly doubt. As I said during the Q&A it just prolongs the cycle which has already started.Had I known the CD Conversion End date was 3\2008 I would have never planted my faith to have this co. move my $$.
I have a system that works when I use it and I shall now go bck to using it diligently with waht I have.No more wishful thinking which is what people I think are doing here. There is nothing to turn this co. around.
OTOH what could happen if you have an idea that they shall do a RS is wait till after the RS Drop and then place your $$ in for the pop back up and then pull it as I see this cycle continueing as long as they have Millions of CD's which will Dillute the stock and be bad for the pps .
Weather this is a POS does not matter.It's the course your CEO is going to take and I really do not see any other option as they shall have 20+Million shares to deal with if they continue with the CD's and all the rest of their BS plan.
I wish you all luck and I really mean that as losing $$ can be very painful. I planned on this making a run to .0065 like the promotionals had stated,but they are paid for.If they pay for them they should atleast beable to use Contractual PR's to promote investor interest,but even those might not entice investors because if you read the 10-Q's you find the CD's that they will need to convert.That in turn brings Dilution.Where Dilution is the solution my $$ can stay away! They do not need use the names of the cos. they have contracts with do that is no excuse for me.I own several other security cos. and one that I do not own has posted contracts without revealing the name of their client.So that excuse does not go well with me.
I'll look for momeentum plays "TO THE UPSIDE" with the use of PR's.I invested in this instead of CBAY which at the time I could have bought at .20 and it ran to .60 .Coulda,shoulda and woulda are all orphans though!
Good luck to all of you and I would write to protest any move in the way of a RS ,but I doubt that wil even help ecause of the Dilution due to the CD's.Therefore this position is not worth holding out for in my opinion.It may minmise your loses though. If you are lucky it might make it to .0003-.0004 at which time I would cash out and wait for the RS to happen because I think it is the only option they shall have seeing that there are so many CD's which shall create a float that will paper the hull of a supertanker,NICE!
There were some clear warning signs like the fact they do not even buy their own issue for one.30Million shrss. I think they own.No Contractual PR's in like 4yrs..And now the CEO hiding behind the NDA excuse and warning they are contemplating an RS. I always said when you hear that word run fo not walk to punch out of the issue and I will now live by what I preach.I am surprised I have not sold sooner.There were other warning signs like the CD's which are numerous. They are making themselves fat from your investment $$ and you'll have plenty of worthless paper to look at once they make their plans implemented which has already occured after they signed the CGM agreement.He is amking out like a bandit of those CD's.
I hope and wish all of those that hold this well as I mentioned so do not shoot the messenger as it's the way I see things and if I am wrong good for all of you!
[ July 18, 2006, 18:46: Message edited by: ABEX TRADER ]
Posted by JIF on :
Abex, I've been reading your posts for months now. It's no secret that you are a basher.
That's o.k.
All I have to say is that if you are going to go, then go. But IF this stock does pop back into the .002's, then promise you'll come back and tell us how it feels to miss out on 10's of thousands of dollars.
Posted by brackep on :
We will soon find out if history does repeat itself. Let's hope it does.
August 2005 --> August 2006
Posted by JIF on :
Was it August of last year that the stock popped?
Posted by brackep on :
yes it did JIF ...
I think time has come we get rewarded ...
Posted by JIF on :
Just 30 days until the 10Q comes out.
Posted by JIF on :
Brackep = I couldn't agree with you more, Brother.
Posted by brackep on :
JIF,
The most important thing would be that Tony thinks the same.
Posted by JIF on :
BOY I LOVE TO SEE .0002! HAHAHAA.
Posted by brackep on :
If we just would get an uptick and some strong news ...
Posted by JIF on :
Just so everyone knows:
I have a sell order in at .0025. Another sell order in at .004.
I'm holding another block long term.
Posted by fishfarmer on :
quote:Originally posted by brackep: If we just would get an uptick and some strong news ...
Just a matter of time guys.
Posted by brackep on :
I have a sell order in at 0.003 Another one at 0.004 and another one at 0.005
looking to pick up some more and those I will sell at 0.006
At least I'm gonna try to ...
Posted by JIF on :
It is just a matter of time. I totally agree.
The last 10q showed marked improvement in revenues, sales, and position.
If we get another strong 10q that shows sustained corporate growth, then we are on the fast track with this one imho.
Not to mention, maybe even profitability on the horizon? Posted by brackep on :
Tony: "We're currently in the midst of a very strong turnaround."
Michael: "We continue to utilize planning and discipline to carefully navigate the company through this early stage of growth. EBITDA (earnings before interest, taxes, depreciation and amortization) losses of $220,166 for the ten months since the acquisition indicate that we may have come close to breaking even in cash flow had we had the full year."
So I think we must be nearly there (the break even period)
Posted by brackep on :
I think we will have a nice 10Q
Posted by brackep on :
I looked up that 76 million dollar contract rumour again:
-------------------------------------------- Here is the break down on the 76,000,000
Digital Descriptor Systems.INC (DDSI) To Receive up to 76,000,000 milloin dollars from Federal Funding part of the Defense Spending
Compu-Capture/32 Our standalone Imaging Database Application for Windows Platforms
ActiveX/32 An SDK that allows integration of Imaging capabilities with your own Host application
Compu-Sketch Windows based composite sketching program
30,000,000 will go to the IMAGING DATABASE AND WILL BE USED AT MAJOR AIRPORTS BY MID 2006.
THE 46,000,000 left will go to other products for AIR,CARGO,RAIL,AND TRUCKS.AND MAYBE PAYOFF SOME DEBTS.IT DOES NOT END THERE IF THE GOV..... IS HAPPY WITH THERE PRODUCTS MORE CONTRACTS AND MORE CONTRACTS.
This based on a RUMOR but this might explain the volume and share price increase.And dont forget this.............
Bush’s New Defense Budget -------------------------------------------------
I wonder if any of you guys who got on a flight saw any products of DDSI/CGM on the major airports ?
Just trying to find out some things ...
Posted by JIF on :
That's good stuff.
Posted by megahead34 on :
When and where was this information provided?
Posted by JIF on :
Come on! Give me a three.
Posted by JIF on :
Does anyone know when they plan to release the new web site? I'm looking forward to seeing it.
And it will be an e-commerce site so customers can re-order product.
That should be cool.
Posted by brackep on :
quote:Originally posted by JIF: That's good stuff.
JIF,
remember it was/is a rumor
Posted by brackep on :
quote:Originally posted by megahead34: When and where was this information provided?
also allstocks and rb and hsm ...
Posted by brackep on :
I think it was mid february
Posted by JIF on :
Well, wishful thinking, anyway.
Posted by brackep on :
I just would like to know if there are ddsi/cgm products being spotted in the major airports ... That could mean it is true after all ...
Posted by JIF on :
Well, I travel a lot. I'll keep an eye out.
Posted by brackep on :
ok JIF, that could help
Posted by fishfarmer on :
To DD DDSI you MUST check out their web sight. You might want to join their forem. Posted by JIF on :
Did we really let this slip to page 2!
Come on guys! Where's the excitement!
Just about 30 days until they release the 2nd Quarter 10Q !!!!!!!!!!!!!!!
Posted by megahead34 on :
What do you mean page 2?
Posted by JIF on :
It was on page two of the post. I like it when DDSI is one of the top posts
Anyway, check out this crazy accumulation. That's huge!
yeah...still watching and waiting...somebody is still holding on to a pile of this. sellers seem to be drying up as well at these prices, thus the low volume days.
Posted by Chipmunk2k on :
I have had a sell order of 3mil shares * .0002 for days now and have gotten no where. What gives with this?
Posted by JIF on :
What gives is that nobody is willing to buy at .0002. Everyone wants in at .0001.
And most people aren't selling at .0001. They have sell orders, like you, at .0002 or higher (mine is at .002 and .004).
Posted by JIF on :
Find enough people who are willing to buy at .0002 and your shares will trade.
Posted by gatorhistory on :
it appears everyone is holding on to their shares, at least for now....waiting on something to move this. I know I continue to hold. Good things should be coming for this co. IMO
Posted by Chipmunk2k on :
no biggie, I think the safe play for me right now is to wait till next 10q. bought at .0003, if the next 10q is like the last. This stock did over 1.4 b in volume in one day when the first 10q of the year hit, marking audited record profits.
Posted by JIF on :
I bet if I dumped 32million shares into the market at .0001, we would have some movement.
Posted by JIF on :
Totally agree. The next 10q could be as good or better.
Either way, it shows steady growth and it also shows that the acquisition of CGM is starting to pay off.
That's huge!
Posted by Chipmunk2k on :
Im guessing the closer we get to the next 10q , should see people getting filled for their sell shares at .0002 , so Ive decided to cancel that order till then. But thats JMO.
Posted by JIF on :
Well, I think that, hopefully, people will hold their shares anticipating good things from the 10q.
And others will want to buy in.
So, if demand exceeds supply, the share price will go up.
We could see this as early as two weeks before the 10q comes out - because people try to by on "anticipation."
This is what they mean when they say "the market has already priced this into the value of the shares."
Posted by JIF on :
IMHO - get in before the 10q comes out. And before they update their web site.
I would try to get in at .0001. Keep the order for another week. If it still doesn't take, then up your bid to .0002. You should be able to get in at .0002.
If it starts to move higher, just get in and ride the wave! Posted by ABEX TRADER on :
hahahaha,JIF! Basher,I'd say more of a realist as this float will make great wallpaper for you when it goes into an RS. It will have to from what I see as there will be more than 20Mshes.Out and they wil not be worth anywhere near the pps now.
Guess who's shares where sold at the EOD yesterday!
I have still some of this POS to sell! I do not have time to Bash anything I do not hold an interest in!
If this thing goes into an RS wonder what this will be worth after that?My guess is a fraction of what you bought it for.
I'd read the 10-Q to get an idea of how much Dilution you have to look forward to. No one could tell me how many CD's there were to convert,but I did not findout till it was to late.
This will not end till 2\2008 and that is in the 10-Q so there will be plenty of worthless shares by that time.
It's interestig what the Vol. reveals ,but you have to know what the Vol. is from.It was all CD Selling when it was in the Billions and there will be more of that to come which mwans more Dilution.
Posted by ABEX TRADER on :
quote:Originally posted by JIF: I bet if I dumped 32million shares into the market at .0001, we would have some movement.
No it would not as I dumped close to that yesterday-You keep pumping as if 1 billion CD's are not going to move this how do you propose 31Mil.shrs. is.
I think your a dreamer more than a realist! With the 10-Q anything will be offset by the Dilution.That is not bashng BTW it's a fact.
Rmemeber they put out or bought the Promotionals and you see where that got this to go.No where near the .0065 .
GL on the dream.Keep it alive!
Posted by JIF on :
Alright dude.
So, riddle me this: The day the last 10q was released, the stock went to .0005. It's not a lot, but it's 500% more than you sold your shares for yesterday. And probably more than you paid for them originally.
So, give me one good reason why we won't see .0005 again in about 3 weeks when we get another good 10q?
Personally, I'll happily wait another 3 weeks to sell at .004 and turn a 100% profit.
Posted by JIF on :
Stock held at 2 for most of the day. Closed there too.
Low volume.
Posted by gatorhistory on :
today = consolidation
JIF - As to the comments made by the local basher, I say ignore it. If you ignore them they will go away. They get paid when people respond to them. Everyone that has actually done DD on this company is most likely holding the stock already, so just ignore it. :-)
Posted by brackep on :
posted at ihub :
Posted by: maryundys In reply to: None Date:7/20/2006 11:58:44 AM Post #of 2791
ddsi called me back this morning. no r s and if wanted r s would have to get a vote from shareholders meeting, the earliest that could happen would be sep oct time frame. cd converting is all,could stop at any time,he talked about the new rules and 7/26 date. i told him to contact smmw and get a nss count for about $1400. he says 15% is u s govt rest is airlines and other private co.s and public co.s..o/s 9b a/s 10b and no r s coming. he could not discuss any govt contracts ,and apparently doesn't need to put in sec filings either if top secret.
Posted by MoneyMoneyMoney on :
quote:Originally posted by gatorhistory: today = consolidation
JIF - As to the comments made by the local basher, I say ignore it. If you ignore them they will go away. They get paid when people respond to them. Everyone that has actually done DD on this company is most likely holding the stock already, so just ignore it. :-)
Very true. I'm still holding my 15mill. I have seen the 10-QSB report. The others can do as they wish. I'll be ready for the run!
Posted by quickpicker on :
I am still holding 5 million shares and will wait to see what happens after the next filing as well.
Posted by Tamoka on :
I'm also hanging on until the next 10Q.
If we show improvement I'll stay for awhile longer.
If we show no improvement or the 10Q shows we lost ground, I'll sell and move on.
Simple as that.
Unfortunately for me, this stock has been a learning experience as to what converting CD's can do to a stock.
Posted by JIF on :
Tamoka,
I think that's very smart thinking. And it's fair.
Posted by JIF on :
Wow,
That's a lot of volume at the open. Looks like someone got out at .0002.
Posted by JIF on :
Over 100 million shares at the open.
It might be possible to buy at .0001 right now. I'm not going to get in any deeper, but someone else may want to jump on it.
Posted by dalton05 on :
it looks like the sellers are out.Can't blame them this hasen't done nothing lately
Posted by JIF on :
200 million shares now.
Posted by JIF on :
approaching 300 million
Posted by megahead34 on :
Whats up with this insane volume?
Posted by JIF on :
quote:Originally posted by dalton05: it looks like the sellers are out.Can't blame them this hasen't done nothing lately
Good. Let them go then.
Posted by JIF on :
approaching 400 million shares now. Someone is dumping at .0001 in a big way.
Can anyone see the L2s?
Posted by brackep on :
JIF,
Are they buys or sells ?
Posted by dalton05 on :
Maybe the insiders see a R/S comming and are running away.
Posted by JIF on :
I have no idea. I can't see the L2's
Posted by Tamoka on :
For what it's worth. Some of the volume may be attributable to the PR SMMW put out today. There has been some talk, over the past two months, about DDSI on the IHUB and RB SMMW board.
It's possible some of those investors are selling their DDSI and getting back into SMMW.
The same TA, that helped take PAIV to the levels it is today, has been engaged to work with SMMW. The thought being that perhaps Jack Donnelly might do for SMMW what he did for PAIV.
All I know is we're back to .0002 with almost 400million volume before 10am.
Posted by FARIMI on :
Why sell so much volume at that price? what is the profit there. unles he got it at less than .0001. Makes no sense!
Posted by JIF on :
I know. It's crazy.
Posted by JIF on :
I'm holding for 30 more days. By then, I will have read the 10q and will see where the stock goes. I'll either get out clean, or ride a very big wave.
Either way, I'm going to sit for 30 more days and wait this one out.
Posted by FARIMI on :
Well! I don't think I can afford that! I think I will die with the company or go up to the ski with, what ever would be the case! But still hoping this will go for good! if some day were at .17 I have faith some day at least will be at least half of that price. Good thing that money I spent was from my piggy bank! jiji
Posted by FARIMI on :
2001! is when I got my first ddsi! it was at .17 come on, we can do it. I think the company is in better shape than then! go go!!
Posted by FARIMI on :
ahhhh! before that was better yet.
Price and Volume (updated Apr 3, 1998) 52-Week Low $0.281 Recent Price $0.281 52-Week High $2.00 Beta N/A Daily Volume (3-month avg) 0 Share-Related Items Market Capitalization $694.0K Shares Outstanding 2.47M Float 1.40M >>
Posted by gatorhistory on :
it will be interesting to see....MFI spiked up above 80, RSI is holding above 50 right now.
Either someone/group dumped their shares in this, which brings on the question why are we holding at two? Flood the market with 400 mln shares you'd think we'd get a steady trade * 1....unless there is an insane amount of buyers out there keeping it afloat.
or...MM's are trading shares around to get what they need.
Posted by quickpicker on :
I have a buy in for a couple mil at .0001. I dought it will go but what the hell.
Posted by brackep on :
seen this:
0.0002 1000000 OTO 12:24:09 0.0002 9000000 OTO 12:12:36 0.0002 9000000 OTO 12:12:36 0.0002 9000000 OTO 12:12:36 0.0002 7000000 OTO 12:12:36 0.0002 9000000 OTO 12:12:36 0.0002 9000000 OTO 12:12:36 0.0002 9000000 OTO 12:12:36 0.0002 9000000 OTO 12:12:36
Posted by JIF on :
approaching 600 million shares now.
Posted by brackep on :
hopefully we get more of this bigger volume days towards the next financials ...
Posted by quickpicker on :
No takers on my .0001 buy.
Posted by gatorhistory on :
it's as if the MM's are swapping these shares amongst themselves.
Posted by ABEX TRADER on :
Seeing that all are convinced I am a Basher,which I assurre you I am not,I cashed out all my shares today and feel better for it. I lost a lot on this POS and gave up positions that did very well like RMDX which is also a Security co.,but with very major differences over this like they do announce agreements and what they are doing.
If anyone is wondering about the Vol. today it was mostly those famous 9Mil.Shr. trades which are CD's and that equates into more Dilution to move through.
I'll keep this on my watcchlis just to see what happens as I would not believe that they are not going to pull an RS and it may just get a pop before they announce one,but I do not count a word a corp. if you want to call this one has to say as they need to have a meeting and it will happen after the 10-Q is announced or during it.
Now I can play the market when I see it recovering instead of waiting for issues to move. One thing is for certain when the market comes back and the lower issues run again there shall be plenty of lower pps issues that will run and I will make my $$ back on them.
Good luck and I hope people make something off this as I hate to see people lose $$.It sux to be wrong ,but this was defintely a setup for a fall and I should have read it before putting faith in Promotionals instead of concrete contractual news.FONR\BRVO and a few others ran when news was postive and this shall never run like those due to NO CONTRACTUAL Agreements announced by the CEO & their PR machine which does not exist.Love those promotionals though!
Look for 9Mil.Shr. trades being shown as those are the CD's being converted and with each that adds to the Float and it's going higher.
BTW there are no insider's.Call and ask! There is 28Mil.Shrs. held by insiders.The co. will not even buy any stock so why would anyone else.
I will wait and keep tabs on if and when the RS comes.I was thinking of keeping it to buy if the RS happened and there was a drastic drop,but I would not even touch it then.
There will be better days coming for better cos. out there. Oil & Gold will be better ussues to look at. IPTM and AOOR are 2 issues I want to look at closely.Yesterday an analyst gave IPTM a pps target of .50 ,but I will follow it to see if it runs with heavy Vol. before commiting.
GL with this,but be wary as there is more Dilution being created with the CD's which if I had known they would not end till 3\2008 I would have never touched this.
Posted by Max Shrap on :
ABEX TRADER
How long did you hold this thing, a couple weeks? I could be wrong, but I think if you would have waited a few weeks for the financials you would have been given a better exit point. Now that you are out of it, please stop the 10 paragraph "non-bashing" posts in a thread that you no longer need. Some of us don't need a reality check. Allow us our dillusional dreams of this thing going to pennyland. Hehe.
Posted by gatorhistory on :
accumulation chart rose again today, MFI and RSI holding in good places. I don't think we were seeing cd's today...I will call the transfer agent again on Monday to see though.
Posted by beechwood on :
She's getting rrrrready to rrrrrunnnnnn!!! Allllllll aboooooooooooooard!!!
Posted by quickpicker on :
How are the charts and characteristics now compared to the time before the run this had last year?
Posted by brackep on :
Guys,
Have some questions here ...
1. How can we be sure that all these 9m trades are cd convertions ? Is that anywhere mentioned in one of the latest financials ? I read them over and I cannot find any details in the reports saying that O/S is growing because of cd's ... Who can say it's definately not retail or mm's shorting
2. When is a stock officialy being shorted ? Isn't that what could be going on for some time now ? If we see heavy volume from now on, couldn't that be some sort of proof that mm's are covering short ? The type of action we see now at PAIV (and PAIM and some say SMMW, and more because it seems to be hype these days)
Can someone explain these 2 things to me as I don't fully understand these
As I'm not mistaken there is a SEC rule effective since the beginning of July regarding shorting and reporting it ?
Anyway I just want DDSI to go up like the rest of us and I think with everything that is happening lately with the short squeezing and the 10Q that is about to come out we could see a higher PPS here
Posted by gatorhistory on :
exactly brackep...naked short reporting is here for pinks. what we saw this past week could very well be the MM's trying to cover. the way to tell if the O/S is growing is to call and ask the transfer agent...if it hasn't grown then we know they are swapping shares among themselves, most likely to cover their short positions. if DDSI could just report some monstrous news, and the market catches them extremely short we could see a rapid rise in PPS. it will be interesting to see what happens tomorrow with the volume we saw on Friday.
Posted by MoneyMoneyMoney on :
I won't be around the next week since I'll be going to clinicals and studying for my final. If someone has a chance give someone in the company a call and tell'em to hire that Donolly fellow from PAIM and SMMW to catch the short sellers and make'em pay. It'd sure be worth it for all of us!!! Gl this week in trading and be safe. Drink plenty of water and eat healthy!
Posted by T e x on :
PAIV... M3.... PAIV
Posted by JIF on :
Well, low volume today. Not sure I follow.
It's all good imho. I think we'll continue to see accumulation and volume as we get closer to the next 10q.
By the way, I predict the 10q for q2 will be out on or about August 20.
Posted by JIF on :
volume is ok for this time of day.
Looking forward to August.
Posted by MoneyMoneyMoney on :
quote:Originally posted by T e x: PAIV... M3.... PAIV
Thanks Tex
Posted by buzzygresham on :
has anyone been able to buy at 0001? what about selling at 0002?
Posted by FARIMI on :
I had my buy order at .0001 for two weeks never got it. But change the order at .0002, got it in seconds.
Posted by dalton05 on :
B/A is .0001-.0002 means you can sell at .0001 and buy at .0002
Posted by buzzygresham on :
right, so if people are buying at 0002 then why wont my sell order go thru at 0002
Posted by FARIMI on :
Buy orders at .0002 are done in seconds.
Posted by buzzygresham on :
i understand that FARIMI. I just dont get why if i wanted to buy at 0002 it would take 2 secs but if i want to sell at 0002 it is impossible. If ppl are getting filled at 0002 that fast on the buy side, then why not the sell side. For someone to buy at 0002 they have to be for sale at 0002. right?
Posted by FARIMI on :
I totally Agree buzzy!! that's why I just don't get it either. Maybe they want you to sell your shares at .0001! maybe to much offer and not much demand!!
Posted by buzzygresham on :
and i understand that there may be ppl in line before me but i have had my sell in for quite a while. Im sure they do want me to sell at 0001. i may have to b4 too much longer. Oh well, guess i just keep waiting. Maybe i will have to wait long enough that this thing will turn into something besides a POS.
Posted by gatorhistory on :
check the charts again....RSI is above 50 again today...accumulation is through the roof. we'll see how MFI shapes up after close. MM's are swapping shares and accumulating again it looks like. notice the early trades, all small...a couple of 100 shares trades in their too.
it appears they are covering to me - but that's JMO.
Posted by FARIMI on :
I hope you don't have to wait to long, or hope you have enough patience to wait for this to run! I've been waiting for almos five years and still will!! hope some day! at least can get my invest! good luck
Posted by buzzygresham on :
you have been in this one for 5 years FARIMI? Didnt it have some at least decent runs last year where you could have gotten out with some bank?
Posted by FARIMI on :
Not enough good to get my invest back.I bought my first 40,000 at .17 per share , that is why I still have hope this can have a run! That time were not good enough things on this company, now they are better that that time, that's why I don't understand why this company can run up a little bit up. If you have the way to see back around 2001 you can see the prices whas .17 then start going down like and apple from the tree!
Posted by buzzygresham on :
yeah, i noticed that. well, maybe something will happen for us soon
Posted by JIF on :
I'm betting on the release of the next 10q.
It's less than four weeks away now.
Posted by jdub on :
quote:Originally posted by brackep: Guys,
Have some questions here ...
1. How can we be sure that all these 9m trades are cd convertions ? Is that anywhere mentioned in one of the latest financials ? I read them over and I cannot find any details in the reports saying that O/S is growing because of cd's ... Who can say it's definately not retail or mm's shorting
2. When is a stock officialy being shorted ? Isn't that what could be going on for some time now ? If we see heavy volume from now on, couldn't that be some sort of proof that mm's are covering short ? The type of action we see now at PAIV (and PAIM and some say SMMW, and more because it seems to be hype these days)
Can someone explain these 2 things to me as I don't fully understand these
As I'm not mistaken there is a SEC rule effective since the beginning of July regarding shorting and reporting it ?
Anyway I just want DDSI to go up like the rest of us and I think with everything that is happening lately with the short squeezing and the 10Q that is about to come out we could see a higher PPS here
Your correct on the SEC putting out a short list, it is set to be published on the 26th of July. the only problem is that it is showing the shorts that have occured after July 3rd and nothing before because they are grandfathered in. I am in LFWK which has the same deal, except in that company they have said they own more shares than they have issued, showing the naked shorts. Dont think that is the case here with this company, I got in here at .0003 and am hoping that the 10Q will do something for me, who knows maybe they have shorted this but I really doubt it, with all of the CD conversions they could have covered all ready. But who knows.
Posted by brackep on :
When I ran DDSI it shows 807,637 (Short Interest) and 1.0 (Days to Cover). The only choice with month was July.
GLTA
Posted by gatorhistory on :
so that is what they were short as of 7/14?
http://www.regsholist.com/ shows it has been being shorted for the past 9 trading days...so that leaves us where? we don't really know since it's been shorted and (hopefully) covered the last week and half.
Thoughts?
Posted by Linux2 on :
Gator, I'm not sure where that leaves us...just hoping that the 10 next month is very positive.
Posted by FARIMI on :
Looks like our Friend JIF Gave up!
Posted by ed19363 on :
The pump ran dry.
Posted by JIF on :
Guys, check out the accumulation on this puppy! It's moving up very well in the last couple of days.
[img] [IMG]http://i7.tinypic.com/211symx.jpg [/img][/IMG] [/IMG]
Posted by JIF on :
quote:Originally posted by ed19363: The pump ran dry.
Hahaha. I'm still here. And I'm still pumping this. I am sitting here with a huge ice cold glass of DDSI cool-aid.
Posted by JIF on :
quote:Originally posted by Linux2: Gator, I'm not sure where that leaves us...just hoping that the 10 next month is very positive.
I agree. I'm basing my judgment on four things:
Confidence in Management Last 10q Positive outlook on next 10q Future earnings potential
The next 10q will tell me everything I need to know about whether these guys can travers the chasm or not.
Posted by FARIMI on :
Any thoughs about yesterda's volume? I saw yesterday in the other board saying he/she bought by mistake 250 000 000 shares instead 25 000 000. I doubt it. That's 50K. stupid mistake!!
Posted by JIF on :
Well, even if that was for real, 250 million doesn't explain the other 1.8billion shares.
And it doesn't explain today's volume either.
Something must be up.
Posted by atleast on :
quote:Originally posted by JIF: Something must be up.
sure, more CDs
Posted by FARIMI on :
Any thoughs about yesterda's volume? I saw yesterday in the other board saying he/she bought by mistake 250 000 000 shares instead 25 000 000. I doubt it. That's 50K. stupid mistake!!
Posted by gatorhistory on :
anybody get a hold of the transfer agent about the o/s count?
Posted by Squire38 on :
quote:Originally posted by JIF: And it doesn't explain today's volume either.
A lot of the 0.0002s are mine I'm selling at the ask. I think I've sold about 4 million so far today.
Posted by JIF on :
Maybe. I don't know. I'm just looking forward to the next 10q.
The stock should move around a little on anticipation leading up to August 21st.
Posted by Squire38 on :
I may rebuy at 0.0001, or 0.0002 (only losing commission fee). After that chat sesson though, I really lost faith.
Posted by JIF on :
Really? I thought it was pretty reasonable. I mean, I didn't hear anything that made me shout for joy, but I was happy that the CEO and CFO made time for us and answered with a strong sense of honesty.
That's more than I ever expect from a penny.
Posted by JIF on :
Not a lot of volume now, but steady accumulation.
Posted by Soylent Green on :
Almost to page three....not good.
Posted by Soylent Green on :
At the open MM's
9*1 5*2 9*3
Better than the usual dozen on 2.
Posted by Chipmunk2k on :
quote:Originally posted by Squire38:
quote:Originally posted by JIF: And it doesn't explain today's volume either.
A lot of the 0.0002s are mine I'm selling at the ask. I think I've sold about 4 million so far today.
Squire... Your sells are going through at .0002?
Wish mine did...
Matthew
Posted by Soylent Green on :
Good morning DDSI....
Posted by Squire38 on :
quote:Originally posted by Chipmunk2k:
quote:Originally posted by Squire38:
quote:Originally posted by JIF: And it doesn't explain today's volume either.
A lot of the 0.0002s are mine I'm selling at the ask. I think I've sold about 4 million so far today.
Squire... Your sells are going through at .0002?
Wish mine did...
Matthew
They did, they haven't since.
Posted by mattn on :
Hi all
Posted by Soylent Green on :
Hoping for big volume today......
Posted by gatorhistory on :
I don't think there are that many shares outstanding that we can have a big volume day without some movement. That's why some people are having trouble buying IMO...if they call their broker they can buy, once they check that there are shares available.
Posted by JIF on :
Is it possible to buy at .0001? Has anybody been able to buy at .0001 or sell at .0002?
Posted by diablo on :
yes. I bought 50m * .ooo1 and sold at .0002 over a week. but I buy order was placed 2 months ago. I tried to place the same order again today thru ameritrade and it wont let me do it anymore. It tell me I can only place this order thru a broker for this symbol. Hm... I wonder why?
Posted by FARIMI on :
SO! LOOKS LIKE WE ALL GAVE UP HERE WITH DDSI HERE AH.!!!
Posted by Wino Ph.D. on :
Nope, just hanging out waiting for their next 10Q. Hopefully that will get some life injected into this baby.
Posted by FARIMI on :
AHHHH! cool! Finally I hear a voice far there!
Posted by FARIMI on :
AHHHH! cool! Finally I hear a voice far there!
Posted by gatorhistory on :
look at the accumulation chart, does it LOOK like anyone has given up on this stock?
we continue to wait for news, and then the 10q.
Posted by Schwabie on :
Still holding. Eventually it will run...
Posted by quickpicker on :
i am still holding as well. Bring on the next quarter results.
Posted by megahead34 on :
Its been a long time and no PR. I wish these people would at least try to reach out to shareholders with what they are doing.
Posted by JIF on :
Guys. Just think: The quarter ended a month ago. They are putting together the results right now. We will see them in two weeks!
I can hardly wait.....it's like waiting for Christmas morning.
Posted by Thomas Mick on :
I just hope that performance is better than the last two releases. I find this quite strange that reports of outrageously good financials generated humdrum pps performance...
I am holding 10M strong and praying for a run!
Posted by ed19363 on :
Just hope you dont get coal in your stocking.... Posted by odinpinetree on :
Is our company in on any of this?
quote:Originally posted by brackep: Well guys I think we can all be glad Tony and Michael were willing to participate this Q&A Session. Some of us probably wanted to see questions answered more in detail but we have to respect the fact they can't due to non-disclosure and security requirments.
Posted by: dustybutler1 In reply to: None Date:8/1/2006 3:58:27 PM Post #of 55464
LISTEN UP... IF broker restricted online buying of ANY stock today, please call Bob Greene (SEC) and report it asap!
He is looking into INSN and IPRE right now and asked me to provide him with ANY other stocks that these brokerage companies are limiting online buying...
greener*sec.gov
But please call him at 202-551-6331
Posted by Linux2 on :
And I love the accumulation!!!
Posted by FARIMI on :
Guys! be honest. I don't know to much about market and stocks, but I had the time to comparee statistics and charts and share price with other companies etc. Dam!!!! why we are so down here in the hole. I mean... this company is way to much better than others, we are in the right field... and their prices is over .02, even if they report negative numbers. why?? this company is so **** in the price? what is the point here? I keep saying over and ove and over, when I bought my first ddsi shares this was at .17 p/s. hones don't understand. I know this is a gambling, but come on, sometimes gambling has a little bit of logic, but this thing, just don't have logic. Or maybe they don't want to let the price go up, because many will become millionares if this happen. Sombody need to talk to the chiefs and wake them up, snap their faces, or fire them and find a good CFO with better knowledge in the market world, because is clear that Mr. Peregrino knows **** about market strategies. IMHO.
Posted by gatorhistory on :
honest?
how's this? a new member saying bad things about a stock and saying they know nothing about stocks or the market...we all know that ======== BASHER
Go get a real job and stop pestering those here that actually want to discuss this company. How's THAT for honesty? Posted by FARIMI on :
Well at least I'm honest in my thoughs, and not trying to foolish people trying to pump this up! don't need to be retarded (nothing personal) to see logic here.
Posted by FARIMI on :
Well at least I'm honest in my thoughs, and not trying to foolish people trying to pump this up! don't need to be retarded (nothing personal) to see logic here.
Posted by FARIMI on :
By the way, I might be new member here but you need to bow in front of this person, who owns this from far way before you. aja.
Posted by FARIMI on :
Posted by BooDog on :
new rules = major buys to sell on an up tick of only .0001 or .0002 = same thing as shorting = what did the sec reeally accomplish?
Posted by atleast on :
quote:Originally posted by FARIMI: Well at least I'm honest in my thoughs, and not trying to foolish people trying to pump this up! don't need to be retarded (nothing personal) to see logic here.
hey, don't feed a troll. these bagholders are pumping DDSI pos with nothing to say except "fully reporting company" for months... will see what they start to sing after r/s or any other surprise from ceo... I have huge DDSI bag as well and just patiently waiting to unload it with less loses as for now. This is real HONEST position - Farimi, I'm on your side - just ignore these mo**ns.
Posted by gatorhistory on :
GROWING REVENUE speaks for itself as does their reporting to the SEC.
'nuff said basher boy. you should at least try to correct your spelling mistakes from post to post when you change names.
Posted by FARIMI on :
Truth hurts ah!
Posted by FARIMI on :
why brokers are blocking buys?
Posted by BooDog on :
I'm out of this by averaging from .0001 to .0002 that was fun....not....still checking on this though from time to time to see if they loose about 6.5B shares.
Posted by brackep on :
I've e-mailed management about the buy/sell orders being rejected by some brokers.
Almost directly got a reply where Michael needed some additional information.
I've sent him back all the info he asked for so they are checking out this problem.
Posted by brackep on :
quote:Originally posted by FARIMI: Guys! be honest. I don't know to much about market and stocks, but I had the time to comparee statistics and charts and share price with other companies etc. Dam!!!! why we are so down here in the hole. I mean... this company is way to much better than others, we are in the right field... and their prices is over .02, even if they report negative numbers. why?? this company is so **** in the price? what is the point here? I keep saying over and ove and over, when I bought my first ddsi shares this was at .17 p/s. hones don't understand. I know this is a gambling, but come on, sometimes gambling has a little bit of logic, but this thing, just don't have logic. Or maybe they don't want to let the price go up, because many will become millionares if this happen. Sombody need to talk to the chiefs and wake them up, snap their faces, or fire them and find a good CFO with better knowledge in the market world, because is clear that Mr. Peregrino knows **** about market strategies. IMHO.
Ah so you are faustorivas at the www.ddsi-cpc.com forum
Posted by RJD2000 on :
Good morning Longs oh and Bashers
Well anyone who is lame enough to beat a dead horse should expect to get beaten at the very least.
Anyway, we all no this stock is dead not the company. Once the quartiles show continual growth on a regular basis and the company starts to put out meaningful PR on a regular basis we will then start to move ahead.
The next earnings report may generate some interest and get the PPS to rise but, IMO I feel that it will take 6-18 months or a merger to get us out of the doldrums. I hope I,m wrong as I usually am.
I’m in this for the long haul so, all you basher go away and waist other peoples thread space.
RJD
WAKE UP and GO GOO GOOO DDSI!!!!
Posted by JIF on :
Good morning everyone. I totally agree with you RJD2000.
I personally believe that the next 10q will be as good or better than the last.
If this is the case, then things should start moving.
IF NOTHING ELSE, the stock should move around to .0004 or .0005 in the days leading up to the release - simply because of anticipation and excitement.
For anyone thinking about getting out at .0001 or .0002, IMHO you should wait two more weeks and get out at .0004 or .0005. Unless you desperately need the money.
Posted by brackep on :
got e-mail from Michael regarding buy/sell orders getting rejected by some brokers:
xxxx
Did some checking, there isn't much of anything the company can do. The individuals having this problem should call their brokerage houses and ask to speak to the compliance officer and if they then don't a satisfactory answer they should then make a compliant to the SEC.
Sorry there isnt more that we can do.
Tks Michael
Posted by JIF on :
That guy writes at a third grade level.
Posted by brackep on :
I asked Michael when the financials will come out:
xxxx
We met with the auditors yesterday and expect to file our 10Q next Tuesday the 15th depending on the review by attorney and auditors. If for any reason they are held up due to their work schedules we will file no later than next Friday the 18th.
Michael
Posted by brackep on :
JIF,
Let's not get offending here ... I'm glad he responded my question ... also I must admit I wrote towards him in a very familiair way ... (I hope you understand what I'm trying to say because I don't know exactly to say it ...)
Posted by JIF on :
Brackep - great work! Man, I am very happy to know that it will be Friday the 18th. That's just two weeks from tomorrow!!!!
Posted by FARIMI on :
I'm not trying to convence anybody, not pushing, just giving a opinion.
You got Any Problem with that Brace?
Posted by brackep on :
it's brackep ... nope got no problem with that ... everybody is free to express himself in a way he or she gets satisfied ...
Posted by FARIMI on :
Thanks for understanding. That's all what meant to say, this board is to express what we think, and that's what I'm doing, as long as I don't offfend anybody I guess I'm fine. But Gator want me to get a real job. I do have a real job. Sorry for misspelling your name brackep!
Posted by brackep on :
I too get sometimes frustrated from watching DDSI ... but I know we are just a few days away of a better PPS (not saying it will go sky high) but we should see some upticks here towards the 10Q. I expect to see 0.0003-0.0004 just before the release. Then if the 10Q would show strong numbers and profitability, we could reach to 0.0006, if that would happen there is room for some more upticks. If everyone would place his/her sell order high enough we could really see a nice PPS.
All this IMO offcourse.
Posted by JIF on :
Can't we all just get along!
I dream of a world where pumpers, dumpers, bashers, and hashers all do the safety dance together.
Posted by FARIMI on :
JEJEJEJEJE!
Posted by farmboy on :
ameritrade has this stock on their resticted list you can only sell not buy online this could hurt ddsi when the 10q comes out. i am having this problem with ipre right now it really keeps the volume down.
Posted by FARIMI on :
PERHAPS A SIGN OF GOOD 10Q!!
Posted by brackep on :
quote:Originally posted by farmboy: ameritrade has this stock on their resticted list you can only sell not buy online this could hurt ddsi when the 10q comes out. i am having this problem with ipre right now it really keeps the volume down.
contact them
Posted by Wino Ph.D. on :
More likely the sign of a stock being shorted. Seems thats what ameritrade has done with some others that were shorted
Posted by JIF on :
Why would they do that? What the hell!
Posted by megahead34 on :
Yep, PAIM is in the same boat. Volume dropped like crazy since its on the restricted list.
Posted by JIF on :
Two weeks from today!!!!!!!!!!!
Posted by farmboy on :
guys and girls we will be in the same boat as the other resticted stocks if someting is not done before the 10q. no volume will kill this stock.
Posted by farmboy on :
spelling is bad been drinking
Posted by jon clogger on :
I just had a pint of whiskey farmboy and didn't notice any spilling mistakes with your post Posted by farmboy on :
tyhank you
Posted by Linux2 on :
Good or bad I think we'll all have a drink when the 10q comes out.
A good 10q = double daq with hot babe serving
A bad 10q = lite beer and dreams...
Posted by Schwabie on :
Well, good or bad in my case doesn't come into play. Schwab restricted this stock from being purchased or sold... I have 30 million shares... I will be calling them on monday to see why it is restricted along with WNSH PAIM and many others....
Posted by brackep on :
DDSI restricted from online trading
Posted by ArmySGT on :
so you are telling me I cannot buy more, which is good lol, I have enough, and only am able to sell, but why do people get restricted?
Posted by brackep on :
quote:Originally posted by ArmySGT: so you are telling me I cannot buy more, which is good lol, I have enough, and only am able to sell, but why do people get restricted?
According to some people you can only buy when you call your broker and place your order.
As for online trading it appears you can only sell.
The restriction is due to "manipulative trading" naked shorting and stuff ... in two words "illegal activities" ... Not by us, the honest shareholders/traders ... damn croocks
Do you know what it means when we cannot buy only sell ? no buying pressure ! no volume ! no pps moving ! no green !
and all that right now when 10Q is coming out ... damn
Posted by JIF on :
No, look:
MM's manipulate the shares when they all get together and push a stock down. Then, they keep it down and accumulate shares (buy shares). Then, they let the stock go up a little and they sell. After they've sold their shares, the start over.
It's a delicate dance, but it works - somehow.
So, when the OCBB steps in and makes it impossible for the MM's to buy or sell the way they want, then they can't manipulate it any longer. The chain is broken and the MM's go away.
This could be exactly what we need to let the stock get off the floor. And it's perfect timing IMHO because the Q2 10Q comes out next week.
I believe the stock should have bounced with the last 10q, but the MM's kept it down. So, this time could be different.
IMHO
Posted by Disnat74 on :
I agree JIF, this is a good thing IMO, we may see it have a nice bounce this 10Q coming.
Posted by JIF on :
If this 10q is anything like the last one, it could be huge imho.
Some people were sceptical about the CGM purchase.
If we have 2 excellent quarters, it should confirm that the CGM acquisition was an excellent play.
Posted by brackep on :
JIF,
I can follow your logic ... hope you're right.
regards,
brackep
Posted by JIF on :
Yeah, me too. I hope I'm right too.
Posted by JIF on :
Just remember guys, THE 10Q IS COMING NEXT WEEK.
Posted by Schwabie on :
117,632,200 in volume... not bad..
Posted by diablo on :
This is what i got from Ameritrade:
Dear Valued Client,
Thank you for your email.?Activity in this security has led us to take precautions to protect our clients and our firm; therefore opening transactions in this security must be placed with a broker.?
SO, if the brokerage is taking precautious, does that mean they heard something bad?
Posted by Schwabie on :
I am calling my brokerage company today to see what they say.. will keep you updated. I have 30 MM shares and I am restricted from purchasing or selling the stock.
Posted by brackep on :
We feel this stock pick is very UNDERVALUED! This Company is a SLEEPING GIANT ready to be AWOKEN.
Stock Alert! =Digital Descriptor Systems, Inc. Ticker Symbol = DDSI Sector:Technology Industry:Application Software Website = www.ddsi-cpc.com Short Term Target Price$0.0095 Long Term Target Price$0.034 Disclosure= We Own Shares Recommendation = MEGA BONUS BUY
Information To Consider
1.Digital Descriptor Systems, Inc. (DDSI) develops, assembles and markets computer installations, consisting of hardware and software, that capture video and scanned images, digitize the image, link the digitized images to text and store the image and text on a computer database that allows for transmitting the image and text by computer or over telephone transmission lines to remote locations. The principal product of DDSI is the Compu-Capture Law Enforcement Program, which is marketed to law enforcement agencies and jail facilities. The program captures a video or scanned image (mug shot) of a subject that is stored by computer application, along with the booking record, physical description and other pertinent information about the subject.
2.Digital Descriptor Systems' EvidPro Tamper-Evident Evidence Bag to Debut at Twentieth Annual Police Security Expo
3.Digital Descriptor Systems, Inc. Announces First Quarter 2006 Results Revenues Increase 485 Percent From First Quarter 2005
4.Digital Descriptor Systems, Inc. Announces Year End Results Record Revenues Increase More Than 800 Percent From Prior Year
5.DDSI should file there 10Q very soon within the next 5 to 8 days.There financials should look very nice.
ACCUMULATION ACCUMULATION.........is the Key Word
Posted by brackep on :
holy volume today. good for them for restricting large buys and sells like that to help stop the shorting IMO. I don't have a problem calling my broker and placing an order - doesn't cost me anymore than just normal trading.
lot of buys going on today. hopefully we see great things from the 10q next week. GLTA.
Posted by brackep on :
quote:Originally posted by gatorhistory: holy volume today. good for them for restricting large buys and sells like that to help stop the shorting IMO. I don't have a problem calling my broker and placing an order - doesn't cost me anymore than just normal trading.
lot of buys going on today. hopefully we see great things from the 10q next week. GLTA.
I hope the restriction will not hold the pps down
Posted by gatorhistory on :
me too...accumulation charts suggests most of the shares are already being held, and have been for sometime now. guess we shall see.
Posted by FARIMI on :
Looks like on line trading restriction didn't work, as they said, they do it to avoid manipulation. some way or another mm's know how to hurt a stock.
Posted by farmboy on :
i am not tring to pump this stock but on rb they are talking of a posible buy back around the time of the 10q.
Posted by FARIMI on :
how good would be that for us?
Posted by MoneyMoneyMoney on :
Accountants: Bagell, Josephs, Levine and Company
Posted by MoneyMoneyMoney on :
The buyback would definitely make a difference if it were to occur. Especially since there is such a large amount of os. Maybe someday but I'll hold my shares until they are worth much more.
Posted by gatorhistory on :
that would be huge for this company. maybe the 10q is going to show the results of some contracts that have been kept hush hush? I would luv any great news out of them.
what's with all the tiny trades at 1?
Posted by brackep on :
0.0002's are getting thin
Posted by brackep on :
I asked Michael if it would be possible to halt the convertible debentures, his answer:
"You may have noticed that the number of conversions has slowed and we don't expect this to change for a while"
Posted by JIF on :
Hey guys! Long time. I've been busy.
I'm holding my breath for next week! It will be very exciting every day to wait for the 10q
Posted by FARIMI on :
Hope you are right JIF!! I'M STILL SKEPTIC. BUT GOOD LUCK ALL
Posted by brackep on :
go DDSI let us see a (few) b/a uptick(s) today Posted by diablo on :
This restriction on buying and selling this stock is definitely hurting this stock. Look at the volume today.................*(oo)*'
Posted by gatorhistory on :
a solid day at 2. anybody that wants to buy this can do so by calling their broker, it's not difficult -- just a tad inconvenient. and not all companies have it restricted FYI.
Posted by Soylent Green on :
It would be nice to see a sector wide increase with the recent events in Europe.
Posted by Schwabie on :
Yes, security stocks are HOTTTT... all we need now is the revenue PR ! Posted by megahead34 on :
There is absolute no action going on this. The company hasn't released a PR in almost two months, leaving us shareholders wondering whats going on. I'm still holding my shares, just cuz i bought them cheap...but im not happy with the company at all.
Posted by BlindMellonChitlin on :
It's a joke like most pennies IMO. They'll do whatever is in 'their' best interest. If it takes an RS or whatever...
Posted by Schwabie on :
Quarter PR should be coming up in Aug.
Posted by FARIMI on :
WELL! THERE IS NOTHING WE CAN DO, BUT JUST WAIT. I'VE BEEN WAITING FOR A LONG TIME FOR THIS TO GO UP, THIS YEAR IS WHEN FINALLY I SAW REVENUES. MAYBE THERE WERE SOME IN THE LAST PAST YEARS, DON'T KNOW BECAUSE I LOST INTEREST IN THIS COMPANY, SO FORGOT I HAD DDSI SHARES. THIS YEAR I NOW HEARD REVENUES, AND PEOPLE ARE SAYING NEXT WEEK DDSI WILL RELEASE THE 10Q, HOPE IT'S TRUE. IF THIS COMPANY DID NOT BECOME A SCAM SINCE I DON'T KNOW WHEN, THEN IT SHOULD GO UP ONE DAY, WHEN? DON'T KNOW. BUT I STILL THINKING IF ONE DAY THE SHARE WAS AT .17 WHICH IS AT THE PRICE IT WAS WHEN I BOUGHT MY FIRST 20,000 SHARES. AS YOU CAN SEE.. MAYOR LOST FOR ME. THEN AT LEAST SHOULD BE WAY HIGHER THAN .0002. IMHO
Posted by gatorhistory on :
Anyone that believes this basher purchased shares at .17 -- please contact me....there's some land in Florida I'd like to sell you.
Waiting patiently for the 10q and any news coming with it....GLTA
And typing in all caps? Have a little etiquette.
Posted by FARIMI on :
Gator looks like you are kind of new on this stock, and looks like you haven done your dd correctly. who ever was here before 2001 know for sure this stock was over .10 six years ago.
Posted by FARIMI on :
Guys! just check the posts and tell whos more basher here. Somebody who's wishing luck to everybody, and using the word hope, or sombody who's saying news are comming, good 10q, solid dac. come on man don't be an Idio.... stop calling me basher is not the first time... buy the way, I cant buy that property at florida, I have no mone, you can sell it and buy more ddsi shares is you have so much faith in this company.
Posted by FARIMI on :
By the way, here's the link that support my words, you can frame it and hang it on your wall, so that way you can see it before you open your big mouth to insult people. http://www.siliconinvestor.com/subject.aspx?subjectid=20209. Posted by gatorhistory on :
LOL, I never said it wasn't OVER .10/share, I said I highly doubt you bought it back then. Make the distinction.
I have high hopes for this and I do already hold a lot of shares here. Doesn't matter to me when it rises, as long as it does in the future. Either way, I hold it as an investment, not as a flipper. and I do wish good luck to all...everybody deserves a shot at making some money if they can.
Posted by FARIMI on :
ARE YOU GIVING ME CLASSES OF ETIQUETTE? YOU SHOULD GIVE IT TO YOUSELF FIRST, WHICH MAY INCLUDE RESPECT THE OPINION OF OTHERS, AND WHAT MAKES THE DIFFERENCE BETWEEN BUY FIVE YEARS AGO OR TODAY OTHER THAN DIFFERENT PRICE PER SHARE? I TRUST IN DDSI THE DAY I PURCHASEF AND TODAY I HAVE HOPE THIS WILL GO UP I DON'T HAVE OTHER OPTION. WHO CARES IF I BOUGHT OR NOT. IF YOU ARE REALLY CONCERN WHAT ME OR OTHER SAYS AND GIVE SOME IMPORTANCE TO THAT, THEN YOU ARE SREW. LOOKS LIKE YOU REALLY BELIEVE IN THAT, WHO TOLD YOU TO BUY DDSI SHARES, IT WAS A TIP FROM A BASHER? NO WONDER YOU KKEP TRACK OF MY COMMENTS AND DON'T WASTE TIME IN ATTACK. (I'M A BUSHER, IF THAT MEANS EXPRESS MY THOUGHS). ANY WAY I WISH YOU LUCK BECAUSE WE ARE IN THE SAME SHIP) AND ETIQUETTE IS NOT WHAT YOU WEAR ON YOUR TOP, IS HWO YOU WEAR IT).
Posted by FARIMI on :
I PROMISE EVERYBODY, DON'T WRITE MORE PERSONAL STUFF HERE, I'LL CREATE AN SPECAIL MESSAGE BOARD SO GATOR CAN USE IT TO CALL ME NAMES AND GIVE ME PERSONAL CLASSES ABOUT HOW TO BE AND OTHER STUFF. SORRY FOR THE WASTED SPACE USED HERE.
Posted by gatorhistory on :
a spade is a spade is a spade is a spade.
Buy it or don't, I don't care. I will call a liar a liar when I see one though. People should buy or sell this after they learn what the company, have talked with them and can make an informed decision. I bought lots, others don't believe in it. I could care less what you do.
User Farimi has been ignored.
Posted by FARIMI on :
OK!
Posted by FARIMI on :
CARE LESS WHAT I DO? THEN SHUT YOU MOUTH AND STOP WORRY ABOUT WHAT I SAY!
Posted by T e x on :
lol, guys...settle down....
Farimi? please stop shouting, eh?
Posted by FARIMI on :
OK TEX NO PROBLEM, AS LONG AS I DON'T GET ATTACKS AGAINST ME, THAT'S FINE WITH ME.
Posted by FARIMI on :
BY THE WAY! GO DDSI, GIVE ME SOME MONEY!!
Posted by T e x on :
lol, man...your caps key stuck?
Posted by FARIMI on :
Ok! Ok! sorry! is this better?
Posted by T e x on :
much...
thank you...
Posted by FARIMI on :
No problemo! Can I now keep pumping this stock? Posted by FARIMI on :
911 was the last trade, it this means something? anybody knows?
Posted by MoneyMoneyMoney on :
It may or it may not. I do however remember right before RSHN took off there were 911 trades. Now if there is any significance we shall see but I have bet there will be.
Posted by jon clogger on :
Easy fellas, download and listen to Led Zeppelins' "Going to California." It's a cure-all.
Go DDSI
Go Jack Daniels *hic*
Posted by FARIMI on :
OH money!! hope you are right. Good luck everyone!!
Posted by Schwabie on :
Let's all have a little prayer before Market Open... lol... Posted by dalton05 on :
I think its going to take more then a prayer to make this thing move.
Posted by FARIMI on :
Yep! we need good news, new contracts, good 10q's, no MM's, buyback, aaaand PRAY!!
Posted by megahead34 on :
yea, i agree....we need some good news. Been 2 months and no news, very bad for the company if they want to keep shareholders.
911 trade doesn't mean anything. I've seen it happen so many times and nothing changes. MMs probably just messing with our heads.
Posted by FARIMI on :
Man! what is happening with volume?
Posted by megahead34 on :
2 hours, no trades.
Posted by FARIMI on :
JIF! any guess when is the 10q will be release?
Posted by jon clogger on :
Looks like a little rumble at the end of the day...
Posted by JIF on :
Hello boys! Sorry I've been out. I've been traveling on sales calls recently.
I predict the 10q to be released between Aug. 18 and 21.
That is next Friday or the following Monday. However, it could be as early as Wednesday IMHO.
If this 10q is as good as the last one, I will have zero doubts about the future of this company.
Posted by JIF on :
OK. I've got to go. I'm off to the pool, then out to Georgetown. Tomorrow I'm at a polo match with a Miss America contestant. Sunday I'm sailing in a race. Tough life! I know.
I'll see you good fella's on Monday!!!
Posted by JIF on :
OK. I've got to go. I'm off to the pool, then out to Georgetown tonight. Tomorrow I'm at a polo match with a Miss America contestant. Sunday I'm sailing in races all day. Tough life! I know.
I'll see you gents on Monday!!!
Posted by brackep on :
quote:Originally posted by brackep: I asked Michael when the financials will come out:
xxxx
We met with the auditors yesterday and expect to file our 10Q next Tuesday the 15th depending on the review by attorney and auditors. If for any reason they are held up due to their work schedules we will file no later than next Friday the 18th.
Michael
10Q will be out between august 15th and 18th
Posted by MoneyMoneyMoney on :
very nice. thank ya'll for your DD and efforts. It is much appreciated!
DDSI will have its day next week!! I can't wait especially if the results are better than before.
Posted by matto on :
Data Systems & Software Inc. (OTCBB:DSSI) today announced results for the quarter and six months ended June 30, 2006.
Sales in the first six months of 2006 decreased from $2.2 million in the first six months of 2005 to $2.0 million in 2006. Gross profit in the first six months of 2006 decreased by $0.1 million compared with the first six months of 2005, while gross profit gross in the second quarter of 2006 increased slightly as compared with gross profit in the second quarter of 2005.
Selling, marketing, general and administrative expenses ("SMG&A") in the first six months of 2006 were approximately the same as in the first six months of 2005 and increased by $0.1 million in the second quarter of 2006 as compared to the second quarter of 2005. SMG&A expenses decreased in the Company's operating segments; however this decrease was offset by increases in corporate SMG&A expense, attributable primarily to stock option compensation recorded in 2006. Corporate SMG&A expense in 2006 includes $0.4 million of stock option compensation expense ($0.3 million recorded in the second quarter) due to the adoption of SFAS 123R effective January 1, 2006.
Under applicable accounting principles, as a result of the Company's sale of Databit in the first quarter of 2006, the results of Databit have been reclassified in the current period and for all prior periods as a discontinued operation. The condensed results of this business are presented in each of the current and comparative periods as net income from discontinued operations.
The decrease in net income from discontinued operations in the 2006 periods as compared with 2005 periods, was primarily due to the inclusion in the 2005 periods of the results of the outsourcing consulting services business which was sold in 2005.
The $2.2 million loss on sale of discontinued operation for the six months ended June 30, 2006, reflects the loss from the sale of the Databit computer hardware company and contract settlement with our former CEO during the first quarter of 2006.
The results of the Company's Comverge equity affiliate did not impact the Company's results for the second quarter ended June 30, 2006, since the Company's net carrying value for its preferred stock investment in Comverge has been reduced to zero by previously recorded losses.
John A. Moore, President and CEO commented: "We look forward to increased activity in our operating segments in future periods." Moore added: "Although, Comverge did not impact our operating results for the quarter, the recent heat wave in the United States drove home to utilities, consumers and regulators alike the importance of Comverge's Demand Response in keeping the lights on during times of peak usage. Over one gigawatt of electric capacity, including over 100 megawatts of capacity provided by Comverge to its utility customers under its Virtual Peaking Capacity(TM) programs, was called on to provide demand relief from New England to California - enough energy to power approximately one million homes on an average day. We are clearly seeing the market needs and regulatory pressure increase towards expanding and optimizing Demand Response programs via business models such as Comverge's Virtual Peaking Capacity(TM) offering."
Posted by matto on :
This makes me mad------The $2.2 million loss on sale of discontinued operation for the six months ended June 30, 2006, reflects the loss from the sale of the Databit computer hardware company and contract settlement with our former CEO during the first quarter of 2006.
Posted by kenzone on :
matto...wrong thread...this one is DDSI, not DSSI. Posted by matto on :
ROFLMAO= friday night
Posted by jon clogger on :
I thought this thread was DUI... I invest in that everytime I go to the liquor store %)
Posted by Schwabie on :
LOL matto nice... I was like WTF happened ! Thank god it wasnt' DDSI Posted by matto on :
LOL, I was so bummed when i saw that. But thank god its not, weel this is what happens to a person in penny land after so much time spent on trying to find the big one!!!!!!! Posted by MoneyMoneyMoney on :
well folks, it looks like DDSI paperwork should be out this week and we should be in position to make some money. Most of mine are bought X .0003 then picked up a few more million X .0002.
10-q, 10-q, 10-q lol.
Do DDSI!!!
Posted by brackep on :
I would like to see some buying pressure today ... uptick would be great
Posted by Schwabie on :
Beers on me if this pans out nicely Posted by Barrharbor on :
Careful Schwabie, I can probably drink 50,000 shares worth. LOL
Posted by Schwabie on :
LoL
Posted by jon clogger on :
Hey barrharbor, there's only room for one drunk on each thread, and that position has been filled thank you very much.
Schwabie you have a deal.
Posted by pharaohno1 on :
Got this from *********
Digital Descriptor Systems, Inc. (DDSI) -- Friday's shares stayed even at $0.0020. The volume was at 15,150,000. Digital Descriptor Systems, Inc. , an industry leader in the development of Homeland Security related products, today announced results for the period ending March 31, 2006. Revenues grew 485 percent, to $870,964, from first quarter 2005 revenues of $148,875. Gross profit rose over 450 percent, to $577,622, from $104,173 for the same period in 2005. All numbers are fully audited. In March 2005, DDSI acquired Somerset County, New Jersey-based CGM Applied Security Technologies, Inc., a leading manufacturer and distributor of various Homeland Security products.
The company, based in Sea Girt, N.J., develops and markets integrated enterprise-wide image applications specifically designed for criminal justice organizations. Customers include states, cities, counties, corrections, justice, and public safety agencies. Additional information is available online, at http://www.ddsi-cpc.com.
quote:Originally posted by Schwabie: Beers on me if this pans out nicely
If this pans out, I'm on my way. I'll hold you to it.
Posted by JIF on :
Well guys, this is the week! We should see the 10q Thursday or Friday.
Posted by shomethamoney on :
Per the quote buy on the rumor and sell on the news, we should see some buyers coming in this week and waiting for the news to either take it on up or stay where it is. JIF I think we could see some heads turn if the news proves that the buy they just did worked out for them.
Posted by FARIMI on :
quote:Originally posted by pharaohno1: Got this from *********
Digital Descriptor Systems, Inc. (DDSI) -- Friday's shares stayed even at $0.0020. The volume was at 15,150,000. Digital Descriptor Systems, Inc. , an industry leader in the development of Homeland Security related products, today announced results for the period ending March 31, 2006. Revenues grew 485 percent, to $870,964, from first quarter 2005 revenues of $148,875. Gross profit rose over 450 percent, to $577,622, from $104,173 for the same period in 2005. All numbers are fully audited. In March 2005, DDSI acquired Somerset County, New Jersey-based CGM Applied Security Technologies, Inc., a leading manufacturer and distributor of various Homeland Security products.
The company, based in Sea Girt, N.J., develops and markets integrated enterprise-wide image applications specifically designed for criminal justice organizations. Customers include states, cities, counties, corrections, justice, and public safety agencies. Additional information is available online, at http://www.ddsi-cpc.com.
"What are you talking about man? where you get this from? what are you smoking?
Posted by JIF on :
Absolutely. In fact, the revenues from the new company, CGM, should start paying off right about now.
[ August 14, 2006, 13:21: Message edited by: JIF ]
Posted by JIF on :
Remember also - they are working on a new web site that will integrate the two companies together.
This web site will also be an ecommerce web site- that way, customers can quickly and easily refill orders for bags, devices, locks, etc. etc.
That should be huge
Posted by FARIMI on :
Come on ddsi, all I'm asking you is .005 that's all. (to start)
Posted by JIF on :
no kidding! .005 would change everything for me right now!
Posted by pharaohno1 on :
i got the news from ameritrade while I was looking at my portfolio news. And I am not smoking. I wouldn't post anything if it wasn't from a news reel.
Posted by brackep on :
I believe they will file tomorrow ... (also Michael told me they would file on august the 15th and if for some reason it would be delayed it would come out not later than august the 18th)
Last time they also filed a notification of late filing the day before the actual 10Q came out.
DIGITAL DESCRIPTOR SYSTEMS INC 0000927454 NT 10-Q 8/14/2006 6/30/2006 DIGITAL DESCRIPTOR SYSTEMS INC 0000927454 10QSB 5/17/2006 3/31/2006 DIGITAL DESCRIPTOR SYSTEMS INC 0000927454 NT 10-Q 5/16/2006 3/31/2006
It was released today (before the 10q) by S T O C K G U RU S.
Digital Descriptor Systems, Inc. (DDSI) -- Friday's shares stayed even at $0.0020. The volume was at 15,150,000. Digital Descriptor Systems, Inc. , an industry leader in the development of Homeland Security related products, today announced results for the period ending March 31, 2006. Revenues grew 485 percent, to $870,964, from first quarter 2005 revenues of $148,875. Gross profit rose over 450 percent, to $577,622, from $104,173 for the same period in 2005. All numbers are fully audited. In March 2005, DDSI acquired Somerset County, New Jersey-based CGM Applied Security Technologies, Inc., a leading manufacturer and distributor of various Homeland Security products.
Posted by JIF on :
I would love to see the 10q tomorrow. That would be a nice surprise.
It would also be encouraging to see DDSI begin filing on time, instead of a week late every quarter.
Posted by FARIMI on :
Man Pharano! if is that true, then is me who's will be smoking!!
Posted by brackep on :
the "news" pharaohno1 is referring to can be read at:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549
Commission File Number: 000-26604
CUSIP Number: 253918 10 6
FORM 12b-25
NOTIFICATION OF LATE FILING
Posted by brackep on :
money ...
quote:Originally posted by brackep: I believe they will file tomorrow ... (also Michael told me they would file on august the 15th and if for some reason it would be delayed it would come out not later than august the 18th)
Last time they also filed a notification of late filing the day before the actual 10Q came out.
DIGITAL DESCRIPTOR SYSTEMS INC 0000927454 NT 10-Q 8/14/2006 6/30/2006 DIGITAL DESCRIPTOR SYSTEMS INC 0000927454 10QSB 5/17/2006 3/31/2006 DIGITAL DESCRIPTOR SYSTEMS INC 0000927454 NT 10-Q 5/16/2006 3/31/2006
Ahh, thank you brackep. I am very sorry I didn't remember your post although I had seen it before.
Thank you for your DD Sir, tis much appreciated!
MoneyMM
Posted by FARIMI on :
Pharaohno! Atleast is right, those news are from May 19th.
Posted by Schwabie on :
pharaohno1 thx for posting missed the news wire. 5 stars.
Posted by Borknagar on :
I don't want to be pessimistic but it doesn't seem to run tomorrow neither the next week or month
Posted by FARIMI on :
shouldn't be running already if good news were comming?
Posted by Borknagar on :
I think that if the news of tomorrow or next friday were good it had already run a bit today. Sorry for my english hehe
Posted by pharaohno1 on :
You're right. I thought the news was for 2nd quarter. I re-read the news and it is the first quarter. My fault. I wish this company can do something!
Posted by FARIMI on :
Anyway! I hope the comming news be similar or better than the 2nd. quarter.
Posted by Schwabie on :
As long as the revenues keep increasing I'm okay with it.
Posted by FARIMI on :
Yes, you are right!!
Posted by ArmySGT on :
could it possibly not be running because they just restricted it from anyone and everyone buying it without making a simple phone call? Sucks I cant get a call through from over here because I have another 500 i want to drop into this lol *******s and their restrictions!!! Always tryin to keep the man down!
Posted by jon clogger on :
Is it me or does Mr. Shupin sort of resemble Al Capone? Appearance only...not implying anything else.
Posted by jon clogger on :
ArmySGT: Thanks for leaving your family to risk your life so I can be with my family tonight. I don't even have a brother or friend who's done that for me.
Posted by brackep on :
I hope today is the start of some nice days/weeks ...
Posted by ArmySGT on :
quote:Originally posted by jon clogger: ArmySGT: Thanks for leaving your family to risk your life so I can be with my family tonight. I don't even have a brother or friend who's done that for me.
Hey anytime, I love what I do, otherwise I dont know how the heck i would put up with it, I have an awesome wife who supports me through these deployments so that makes things a whooole lot easier, unless i lose money in stocks hahaha. Thanks for the support from everyone
Posted by megahead34 on :
So when is the report going to come out?
Posted by FARIMI on :
bROKERS Mother F............s! why brokers don't take orders on line. are brokers involved with MM's also in black gloves? they know something for sure!!! what ever it is they are hurting this stock.
Posted by JIF on :
quote:Originally posted by jon clogger: ArmySGT: Thanks for leaving your family to risk your life so I can be with my family tonight. I don't even have a brother or friend who's done that for me.
Dude, I totally second that. I too have a huge admiration for our boys and girls that keep me safe.
And you know something; I've never gotten a phone call from any of them asking me for something in return.
Cheers to you ArmySGT.
Posted by JIF on :
quote:Originally posted by Borknagar: I think that if the news of tomorrow or next friday were good it had already run a bit today. Sorry for my english hehe
That's ok Bork. I've never known a Vulcan with good English.....Bork is Vulcan, yes?
Posted by BuckyBarnes on :
quote:Originally posted by JIF:
quote:Originally posted by jon clogger: ArmySGT: Thanks for leaving your family to risk your life so I can be with my family tonight. I don't even have a brother or friend who's done that for me.
Dude, I totally second that. I too have a huge admiration for our boys and girls that keep me safe.
And you know something; I've never gotten a phone call from any of them asking me for something in return.
Cheers to you ArmySGT.
Huge Dittos....Thank you for Standing the Wall!!!!
Posted by FARIMI on :
God protect them all!!!
Posted by Borknagar on :
Uh? Vulcan? Borknagar is a norwegian music band hehe, don't know if Bork is Vulcan, i'm spanish and very bad at english Posted by JIF on :
Cool man. How did you pick your handle (name). You must like the band. I'll try to find it on iTunes.
Do you know what the name means?
Posted by JIF on :
By the way, if the trades are restricted, it might mean that there are less available shares.
Less available shares can drive the price per share through the roof (it's effectively like an immediate stock buy back).
I can't wait for after the bell! I'm going to check when I get home tonight to see if the 10q was released.
Posted by shomethamoney on :
JIF - will the filing show on sec.gov as soon as it posts, I wanted to know so that I could just look on there instead of waiting on the news releases.
Posted by Borknagar on :
The name doesn't mean anything but can sound like some figures of nordic mithology.
I see that you have a lot of faith in this company, but it doesn't seem to run soon, volume is very low and still continues in 0.0002
Posted by FARIMI on :
Hi JIF, even if I want to put a sell order?
Posted by shomethamoney on :
Just called their office at 1-732-359-0260 and spoke with Michael Pelligerno (i think I spelled it right)the CFO, and he said that the audit may show tomorrow but it could go out no later than 5 days past the extension, which means that it has to be posted by 8/19 or 8/21(if they go by only business days). He said that he could not give me any information beyond that because of the sec rules. He would not get into details because of the filing. Just wanted to give an update.
Posted by JIF on :
quote:Originally posted by shomethamoney: JIF - will the filing show on sec.gov as soon as it posts, I wanted to know so that I could just look on there instead of waiting on the news releases.
YES.
Posted by jon clogger on :
This is like standing at the craps table in Vegas with a good shooter, and the twenty or so people standing around are loaded up on the inside numbers ready to go...and the pit boss delays the game to count money...switch dealers...crack the same lame-a$$ jokes... JUST ROLL THE FARKING DICE ALREADY!!!!!
I have issues, but go DDSI, roll them dice.
Posted by brackep on :
Dallas, Texas, Aug 16, 2006 (M2 PRESSWIRE via COMTEX) -- ********* Pre-Market Updates for Wednesday include IBSG International, Inc. (OTCBB: IGII), Digital Descriptor Systems, Inc. (OTC: DDSI), Microfield Group Inc (OTCBB: MICG), Spescom Software Inc. (OTCBB: SPCO), IR Biosciences Holdings, Inc. (OTCBB: IRBO), and Thomas Equipment, Inc. (OTCBB: THM) ********* Pre-Market Updates feature companies with significant moves in either volume or price in the past two trading sessions. In our update we analyze recent news about the companies featured and detail the movement in the stock.
Dallas, Texas, Aug 16, 2006 (M2 PRESSWIRE via COMTEX) -- Talking Stocks Pre-Market Updates for Wednesday include CSB Bancorp, Inc. (OTCBB: CSBB), CommerceWest Bank NA (OTCBB: CWBK), New Life Scientific, Inc. (OTCBB: NWLS), BrandPartners Group, Inc. (OTCBB: BPTR), American Energy Group, Ltd. (OTCBB: AEGG), Digital Descriptor Systems, Inc. (OTC: DDSI). Talking Stocks Pre-Market Updates feature companies with significant moves in either volume or price in the past two trading sessions. In our update we analyze recent news about the companies featured and detail the movement in the stock.
Posted by ArmySGT on :
DDSI -- Digital Descriptor Systems, Inc. Com ($0.001)
COMPANY NEWS AND PRESS RELEASES FROM OTHER SOURCES:
TalkingStocks.com: Alerts for Wednedsay, August 16, 2006 - Featuring CSB Bancorp, New Life Scientific, Digital Descriptor Systems, BrandPartners Group and More
Dallas, Texas, Aug 16, 2006 (M2 PRESSWIRE via COMTEX) -- Talking Stocks Pre-Market Updates for Wednesday include CSB Bancorp, Inc. (OTCBB: CSBB), CommerceWest Bank NA (OTCBB: CWBK), New Life Scientific, Inc. (OTCBB: NWLS), BrandPartners Group, Inc. (OTCBB: BPTR), American Energy Group, Ltd. (OTCBB: AEGG), Digital Descriptor Systems, Inc. (OTC: DDSI). Talking Stocks Pre-Market Updates feature companies with significant moves in either volume or price in the past two trading sessions. In our update we analyze recent news about the companies featured and detail the movement in the stock. If you would like to feature your publicly traded company in our alerts or on TalkingStocks.com, email john*talkingstocks.com or call (469)252-3031. Digital Descriptor Systems, Inc. (OTC: DDSI) Tuesday's market closed at a 0.00% change at $0.0002 per share. There were 25,253,123 shares traded. With a range of applications across industries which require tamper-detection solutions without leaving residue on the items it protects -- from trailer doors, pharmaceutical packaging and aircraft to impounded vehicles -- hi-tech NO-REZ adhesive seals are self-voiding and available in blue, red and an array of other colors, even when purchased in small lots. Introduced by CGM Applied Security Technologies, Inc., a unit of Digital Descriptor Systems, Inc., these units are a true breakthrough in safeguarding valuable items inexpensively.
The company, based in Sea Girt, N.J., develops and markets integrated enterprise-wide image applications specifically designed for criminal justice organizations. Customers include states, cities, counties, corrections, justice and public safety agencies. Additional information is available at http://www.ddsi-cpc.com. Its subsidiary, CGM Applied Security Technologies, Inc., based in Somerset, N.J., is a leading manufacturer and distributor of homeland security products, including indicative and barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers, as well as a number of highly specialized authentication products. Additional information is available at http://www.cgmsecuritysolutions.com. Posted by JIF on :
S T O C K G U R U
Digital Descriptor Systems, Inc. (DDSI) - Tuesday's shares stayed even at $0.0002 with a total of 25,253,123 shares traded. On June 19, 2006, Digital Descriptor Systems, Inc. along with its subsidiary, CGM Applied Security Technologies -- will introduce its latest law enforcement product, the EvidPro tamper-evident evidence bag, at the 20th annual Police Security Expo (http://www.police-security.com), which begins June 20 in Atlantic City, N.J. ''Maintaining the integrity of evidence is absolutely essential in a large percentage of criminal investigations -- so much so that it can be the deciding factor in a prosecution,'' says Tony Shupin, president and CEO of DDSI. ''Our EvidPro bag has been designed by law enforcement professionals to address their specific needs. It enables police and officers of the court to proceed with confidence, because they'll know that if their evidence is sealed within our bag, there's been no compromise or contamination.''
The company, based in Sea Girt, N.J., develops and markets integrated enterprise-wide image applications specifically designed for criminal justice organizations. Customers include states, cities, counties, corrections, justice and public safety agencies. Additional information is available at http://www.ddsi-cpc.com. Its subsidiary, CGM Applied Security Technologies, Inc., based in Somerset, N.J., is a leading manufacturer and distributor of homeland security products, including indicative and barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers, as well as a number of highly specialized authentication products. Additional information is available at http://www.cgmsecuritysolutions.com. Posted by JIF on :
This is my week boys. This is the week DDSI goes to .02 and I sell it all and pay off my house and put the rest into long term conservative investments.....and I tell my boss what I really think about him!
Now, you've got to walk before you can run. Screw that.....get your track shoes on boys!
Posted by ArmySGT on :
lacing them up now and getting a good stretch in before the race in 15 minutes lol
Posted by MoneyMoneyMoney on :
I've got mine on! I can run for hours and I hope DDSI can too .
Hooyah!! Rock of the Marne.
Posted by ArmySGT on :
Hey money3x you didnt happen to be in the Sledgehammer BDE with the Marne? Cuz i would kill myself running forever to that song! lol, did it while i was OPCONED to the Marne Div
Posted by Thomas Mick on :
I wish I could share your optimism JIF. Posted by megahead34 on :
When is the report supposed to be out?
Posted by Thomas Mick on :
Late this week.
Posted by RJD2000 on :
As stated above it could be as late as Friday or Monday. Here is the SEC link for DDSI.
I'm really hoping for a good 10q, maybe I will then be able to sell some of my shares at .0004
When the last 10q came out, we saw over 1 billion in volume the following day. However, with the restrictions that some brokers have on this stock now. Im not sure if that is possible again. Any thoughts???
Posted by ArmySGT on :
looks like i will have to make some phone calls hahaha bout the only way this baby will be able to sell
Posted by JIF on :
I've noticed that they usually file late. First, you see a late filing report. (that's when they tell the sec about the late filing and request approval to file late).
Then, they file about 3-5 days late. That's why I predicted the 22nd of the month (Friday or Monday).
If they filed on time, it would have been yesterday.
But don't worry! It's coming, and if it's anything like the last one, it'll be a wopper.
Posted by MoneyMoneyMoney on :
quote:Originally posted by ArmySGT: Hey money3x you didnt happen to be in the Sledgehammer BDE with the Marne? Cuz i would kill myself running forever to that song! lol, did it while i was OPCONED to the Marne Div
Actually I was in 1-64 Armor batt later moving to 3-7 Cav. We ran around Ft. Stewart singing the Dog Face Soldier Song lol. I am 19 D Cavalry scout. One question for you, do you miss that song LMAO? Nice to have you around Sargent.
Posted by ArmySGT on :
quote:Originally posted by MoneyMoneyMoney:
quote:Originally posted by ArmySGT: Hey money3x you didnt happen to be in the Sledgehammer BDE with the Marne? Cuz i would kill myself running forever to that song! lol, did it while i was OPCONED to the Marne Div
Actually I was in 1-64 Armor batt later moving to 3-7 Cav. We ran around Ft. Stewart singing the Dog Face Soldier Song lol. I am 19 D Cavalry scout. One question for you, do you miss that song LMAO? Nice to have you around Sargent.
so youre a dogface soldier, i was with 3bct for ODS 0202 then OIF1 and 2 with 1-41 IN out of riley, we got shafted back and forth for all of it, hope stocks are doing you good cuz they arent too good to me lol
Posted by MoneyMoneyMoney on :
sucks, all the shifting esp if your married! Well stocks have been great so far and hoping it'll change around for you now. DDSI will soon change that all . I will have lots more money to make money. Gl luck to you Sarge.
Posted by JIF on :
Can anybody buy in at .0001?
Posted by Chipmunk2k on :
I highly doubt you can buy any at .0001
Posted by Soylent Green on :
What's up with the trades exactly one minute apart?
Posted by Soylent Green on :
It looks like one of the MM's left his left turn signal on.
Posted by gatorhistory on :
CMF continues to rise, accumulation is through the roof. All those little trades looked like someone getting shares from any of the MM's they could to fill an order.
Good things to come hopefully.
Posted by JIF on :
Yup. I agree. I think they're loading up - small amounts so not to drive up the price too soon.
Posted by shomethamoney on :
I just heard from another message board that the reason for the delay is to give more time as a precautionary if anything needed reviewing, but on their DDSI side, they feel ok with the audit. Just wanted to update.
Posted by jon clogger on :
The ask ended at .0003, for you stock gurus is that the equivelant of hearing faint thunder in the distance? Perhaps some dark clouds forming...drop the sails and don yer lifevest folks.
Posted by JIF on :
is it possible to still buy at .0002? I might have to load up some more tomorrow morning.
Posted by shomethamoney on :
It looks like someone is getting things ready because of a GOOD 10K coming out. Must be some good news on the horizon!!!
Posted by JIF on :
I think it's going to be their best 10q ever. And it's audited. So, that's very good.
Here are some predicted positives to this stock:
No dilution Audited books Disclosure on the web site Accessible leadership team Great returns from the last acquisition 400-800% increases in revenue year over year New e-commerce web site High market demand for these products
Any downside? Please add thoughts.
Posted by Schwabie on :
It doesn;t matter is they are good or not... even 10 % increase from last quarter would be alot... remember its like 800 % + 500 % on top of 10 % is a frigging lot... if they keep increasing profit... in a year or so they could be profitable... IMHO
Posted by Chipmunk2k on :
Well the CMF is still climbing and the highest its ever been in a long time, I cannot believe the amount of accumulation on this stock. With another good 10q things are looking good.
Posted by JIF on :
Anybody check the sec this morning to see if the 10q is out?
Posted by JIF on :
I'm serious you guys, if this thing hits .004 before I sell, I'm taking everyone out for a big night of drinking.
Posted by Chipmunk2k on :
quote:Originally posted by JIF: Anybody check the sec this morning to see if the 10q is out?
yupp, not yet.
Posted by Schwabie on :
LIAR ! I am Posted by Schwabie on :
Form Formats Description Filing Date File/Film No NT 10-Q [html][text] 6 KB Notification of inability to timely file Form 10-Q or 10-QSB Acc-no: 0001144204-06-032776 (34 Act) 2006-08-14 000-26604 061027695
They haven't filed yet
Posted by Soylent Green on :
911 time
Posted by JIF on :
yup. Low volume. Everyone's dug in and holding strong.
Posted by JIF on :
I amaze myself with my predictions sometime- I predicted August 22nd about 2 months ago.
Thank you, thank you.
I'd like a cookie now.
Posted by Schwabie on :
Don't count your money... No cigar yet...
Posted by megahead34 on :
Another 911 trade..........interesting??
Posted by Schwabie on :
I keep hitting refresh every 15 minutes to see if they filed... lol
Nah, 911 trades were good but then after RSHN people use them for fun...
Posted by JIF on :
remind me what 911 is code for?
Is it hold, accumulate, what?
Posted by fishfarmer on :
Emergency. Posted by megahead34 on :
haha yea. Remember the show "Rescue 911" with William Shatner?
Posted by jon clogger on :
Aren't we all do for a pinky Jackpot? Maybe you guys are raking it in, but my profits have been barely enough to cover the big turds.
____ ____ ____ / / / / / / / / /
Posted by jon clogger on :
Sorry, my graphics were supposed to look like three "7"s. I failed my gwbasic course in high school- 1985.
Go DDSI
Posted by JIF on :
I'm chewing my fricken nails over here.
Posted by FARIMI on :
I really hope we don't get dissapointed! Good luck everyone.
Posted by JIF on :
Well, that said, let's remember that these guys are very conservative and very honest in the way they report.
So, the numbers will speak for themselves (i.e. sales $, revenue increases, volume increases, deals closed, etc.).
However, I expect them to make a couple of "down to earth comments" that are conservative in nature only to show that the 10q is fair and balanced.
So, let's expect some of that and understand that it's just good responsible reporting.
Posted by Schwabie on :
Personally I don't think increase will be big... I am not bashing. Reason I say this is because they have grown so much. I am not bashing... I own 30 million shares.. Im' just below JIF.
Also if you check the late filing:
(3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof? [ ] Yes [X] No
If so, attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reason why a reasonable estimate of the results cannot be made.
Posted by jon clogger on :
I used to chew my nails JIF, until I discovered Copenhagen.
Posted by Schwabie on :
its out !
Posted by Schwabie on :
10-Q 1 v050736_10q.htm
Digital Descriptor Systems, Inc. and Subsidiary Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2006 and 2005 (Restated) (Unaudited)
Digital Descriptor Systems, Inc. and Subsidiary Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2006 and 2005 (Restated) (Unaudited)
Condensed Consolidated Balance Sheet at June 30, 2006 Condensed Consolidated Statements of Operations for the Six and Three Months Ended June 30, 2006 and June 30, 2005 (restated) Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2006 and June 30, 2005 (restated)
Notes to Condensed Consolidated Financial Statements (Unaudited)
Digital Descriptor Systems, Inc. and Subsidiary CONDENSED CONSOLIDATED BALANCE SHEET JUNE 30, 2006 (UNAUDITED)
June 30 2006 ASSETS Current Assets Cash and cash equivalents $ 129,313 Restricted cash 0 Accounts receivable, less allowance of $34,550 667,730 Inventory 474,429 Prepaid expenses 6,325
Total Current Assets 1,277,797
Property and equipment, net of accumulated depreciation of $19,875 360,598
Other Assets Deposits 1,730 Goodwill 4,054,998 Intangible assets, net of accumulated amortization of $5,055 175,889 Deferred financing costs, net 194,591
Total Assets $ 6,065,603
LIABILITIES AND STOCKHOLDERS' (IMPAIRMENT)
Current Liabilities Accounts payable $ 285,997 Accrued expenses 317,299 Accrued interest 1,150,030 Deferred income 180,744 Convertible debentures current 3,505,716 Derivative liabilities 7,888,224
Shareholders' deficit Preferred stock, $.001 par value 1,000,000 shares authorized, -0- issued and outstanding -0- Common stock, par value $.001; authorized 9,999,000,000 shares; 9,243,406,000 issued and outstanding 9,243,406 Additional paid-in capital 9,406,917 Accumulated deficit (31,066,740 )
Total Shareholders' Impairment (12,416,417 )
Total Liabilities and Shareholders' Impairment $ 6,065,603
The accompanying notes are an integral part of these condensed consolidated financial statements.
Digital Descriptor Systems, Inc. and Subsidiary CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 2006 AND 2005 (RESTATED) (UNAUDITED)
Three Months Three Months Six Months Six Months Ended Ended Ended Ended 30-Jun-06 30-Jun-05 30-Jun-06 30-Jun-05 (Restated) (Restated) INCOME Net Sales $ 1,233,729 $ 875,513 $ 2,104,693 $ 1,024,388 Cost of Revenue 334,538 447,460 627,880 492,161 Gross Profit 899,191 428,053 1,476,813 532,227
OPERATING EXPENSES General and administrative 677,406 555,080 1,367,629 775,453 Sales and marketing 60,585 79,070 Research 26,512 51,606 Total Operating Expenses 677,406 642,177 1,367,629 906,129 LOSS BEFORE OTHER INCOME (EXPENSE) 221,785 (214,124 ) 109,184 (373,902 )
OTHER (EXPENSE) Interest (1,202,312 ) (298,726 ) (1,934,505 ) (599,298 ) Amortization of deferred financing cost (32,621 ) (37,225 ) (69,846 ) (77,365 ) Amortization of debt discount (323,029 ) (602,975 ) (646,058 ) (1,043,730 ) Change in fair market value of derivative liability (668,136 ) (655,070 ) (1,329,156 ) (1,285,771 ) Depreciation and Amortization (18,699 ) (41,606 ) (24,930 ) Other income and expenses (1,050 ) (9,947 ) Total Other (Expense) (2,245,847 ) (1,593,996 ) (4,031,118 ) (3,031,094 ) NET (LOSS) APPLICABLE TO COMMON SHARES (2,024,062 ) (1,808,120 ) (3,921,934 ) (3,404,996 ) NET (LOSS) PER BASIC AND DILUTED SHARES (2,024,062 ) (1,808,120 ) (3,921,934 ) (3,404,996 )
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (0.00 ) (0.00 ) (0.00 ) (0.01 )
Weighted average shares of common stock Outstanding, basic and diluted 7,814,385,941 371,637,947 5,881,322,478 311,343,819
The accompanying notes are an integral part of these condensed consolidated financial statements.
Digital Descriptor Systems, Inc. and Subsidiary CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005 (RESTATED) (UNAUDITED)
Six Months Ended June 30, 2006 2005 (Restated) Net (loss) $ (2,024,062 ) $ (1,808,120 ) Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 41,606 24,930 Common stock issues for settlement of vendor payables 0 30,000 Amortization of deferred financing cost (32,621 ) (37,225 ) Amortization of debt discount 323,029 602,975 Amortization of benefical interest 798,271 (42,443 ) Change in fair market value of derivatives 668,136 655,070 Bad debt expense 7,500 0
Changes in operating assets and liabilities: (Increase) in inventory 48,370 95,944 (Increase) Accounts receivable (131,772 ) (192,674 ) (Increase) Prepaid expense, deposits and other assets 0 (15,579 ) Accounts payable 784 59,647 (Decrease) Increase Accured expenses 701 (1,176 ) Accured interest 343,345 214,545 (Decrease) Deferred Income 8,224 (30,809 )
Net cash provided by (used in) operating activities $ 51,511 $ (444,915 )
CASH FLOWS FROM FINANCING ACTIVITIES Payment of financing costs 0 (502,041 ) Due to officer and director 0 (13,830 ) Net cash provided by (used in) financing activities 0 (515,871 )
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 28,604 $ (2,511,278 )
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 100,709 3,080,336 CASH AND CASH EQUIVALENTS - END OF PERIOD $ 129,313 $ 569,058
The accompanying notes are an integral part of these condensed consolidated financial statements.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
Note 1 - Description of Business
Digital Descriptor Systems, Inc., incorporated in Delaware in 1994, develops, assembles and markets computer installations consisting of hardware and software, which capture video and scanned images, link the digitized images to test and store the images and text on a computer database and transmit this information to remote locations. The principal product of the Company is the Compu-Capture Law Enforcement Program, which is marketed to law enforcement agencies and jail facilities and generates the majority of the Company's revenues. Substantially all of the Company's revenues are derived from governmental agencies in the United States. CGM is a manufacturer and distributor of indicative and barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers as well as a number of highly specialized authentication products.
Note 2 - Summary of Significant Accounting Policies
Significant accounting policies followed by the Company in the preparation of the accompanying condensed consolidated financial statements are summarized below:
Use of Estimates The preparation of the condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.
Revenue Recognition The Company derives revenue from the sale of hardware, software, post customer support, and other related services. Post customer support includes telephone support, bug fixes, and rights to upgrades. Other related services include basic training.
The Company recognizes revenue upon delivery of the product to the end-user, when the fee is determinable and collectibility is probable. Revenue allocable to post customer support is recognized on a straight-line basis over the period which the service is to be provided. Revenue collected for future services is recorded as deferred income and totaled $ 180,744 and $ 158,644, respectively, for the six months ended June 30, 2006 and 2005. Revenue allocable to other services is recognized as the services are provided.
Software Development Costs All costs incurred in the research and development of new software products and costs incurred prior to the establishment of a technologically feasible product are expensed as incurred. Research and development of software costs were $ 53,654 and $51,606, respectively, for the six months ended June 30, 2006 and 2005.
Cash and Cash Equivalents For the purpose of the statement of cash flows, cash and cash equivalents include time deposits, certificates of deposits, restricted cash, and all highly liquid debt instruments with original maturities or three months or less.
Accounts Receivable Accounts receivable are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. No interest is charged on any past due accounts. Accounts receivable are stated at the amount billed to the customer. Accounts receivable was $ 667,730 and $261,206, respectively, for the six months ended June 30, 2006 and 2005.
The carrying amount of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amount that will not be collected. Management reviews all accounts receivable balances that exceed 90 days from invoice date and based on assessment of current creditworthiness, estimates the portion, if any, of the balance that will not be collected. The allowance for doubtful accounts was $68,084 and 34,550, respectively, for the six months ended June 30, 2006 and 2005.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
Income Taxes The Company provides for income taxes under the liability method. Deferred income taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Such differences result from differences in the timing of recognition by the Company of net operating loss carry forwards, certain expenses, and differences in the depreciable lives and depreciation methods for certain assets.
Accounting for Stock Options Financial Accounting Standards Board issued Statement No. 123 (SFAS 123), "Accounting for Stock-Based Compensation" which provides companies with a choice to follow the provisions of SFAS 123 in determination of stock-based compensation expense or to continue with the provisions of Accounting Principles Board Opinion No. 25 (APB 25). The Company has elected to follow the provisions of APB 25. Under APB 25, if the exercise price of the Company stock options equals or exceeds the market price of the underlying Common Stock on the date of grant, no compensation expense is recognized. The effect of applying SFAS 123 to the Company's stock-based awards results in net loss and net loss per common share that are disclosed on a pro forma basis in Note 7 .
Net Loss Per Common Share Basic loss per share is calculated by dividing the net loss by the weighted average common shares outstanding for the period. Diluted loss per share is calculated by dividing the net loss by the weighted average common shares outstanding of the period plus the dilutive effect of common stock equivalents. Common stock equivalents were not included in the computation of diluted earnings per share when the Company reported a loss because to do so would be antidilutive for the periods presented.
Concentration of Credit Risk Financial instruments which potentially subject the company to a concentration of credit risk principally consist of cash and accounts receivable. Concentration of credit risk, with respect to accounts receivable, is limited due to the Company's credit evaluation process. The Company does not require collateral from its customers. The Company sells its principal products to end users and distributors principally in the United States.
Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and convertible debentures approximates their fair value based on the liquidity of these financial instruments and based on their short-term nature.
Reclassification Certain amounts at June 30, 2005 have been reclassified to conform to the presentation of the June 30, 2006 amounts.
Note 3 - Impact of Recent Accounting Pronouncements
In December of 2004 the FASB issued a revision to Statement No. 123, Accounting for Stock-Based Compensation. This Statement supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and its related implementation guidance. This Statement establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for good or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. This Statement focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. This Statement does not change the accounting guidance for share-based payment transactions with parties other than employees as provided in Statement 123 as originally issued and EITF Issue No. 96-18, "Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with selling, Goods or Services." This Statement does not address the accounting for employee share ownership plans, which are subject to AICPA Statement of Position 93-6, Employers Accounting for Employee Stock Ownership Plans. The revisions of this statement did not have a material impact upon the Company's condensed consolidated financial statements.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
The Company reviews the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair market value. Goodwill represents the excess of the cost of the Company’s acquired subsidiaries or assets over the fair value of their net assets at the date of acquisition. Under Statement of Financial Accounting Standards (“SFAS”) No. 142, goodwill is no longer subject to amortization over its estimated useful life; rather, goodwill is subject to at least an annual assessment for impairment applying a fair-value based test.
Note 4 - Convertible Debentures
Based on the guidance in SFAS133 and EITF00-19, the Company concluded that the conversion features of it convertible debentures were required to be accounted for as derivatives. The imbedded derivative feature was bi-furcated and the fair market value was determined using a convertible bond valuation model. The derivative instruments are recorded at fair market value with changes in value recognized during the period of change. For further discussion, see footnote #11 regarding restatement.
During May 2001, the Company issued three convertible notes for an aggregate amount of $20,000. The debentures are collateralized by substantially all of the company's assets. The debentures accrue interest at the rate of 10% per annum.
The holders have the right to convert the principal amount plus accrued interest into shares of the Company's common stock. The conversion price in effect on any Conversion Date shall be an amount equal to 50% of the mean average price of the common stock for the ten trading days prior to notice of conversion.
We recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 4,992 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
During September 2001, the Company issued two convertible debentures for an aggregate amount of $400,000. The debentures are collateralized by substantially all of the company's assets. These debentures are in default as they were due on September 30, 2002. The debentures accrue interest at the rate of 12% per annum. A late fee equal to 15% of the accrued and unpaid interest is also assessed during the default period. Interest on the debentures was not paid quarterly and accordingly accrued interest and late fees payable related to the notes totaling $187,600 is included in the accompanying condensed consolidated financial statements.
The holders have the right to convert the principal amount plus accrued interest into shares of the Company's common stock at anytime after issuance. The conversion price in effect on any Conversion Date shall be the lesser of $.08 per share or 50% of the average of the lowest three inter-day sales prices during the ten trading days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 800,000 shares of common stock of the Company at an exercise price per share equal to the lesser of $.36 or the average of the lowest three closing sales prices for the common stock during the twenty Trading Days immediately prior to exercise. The estimated fair value of the warrants of $48,000 was allocated to paid-in capital. This resulting debt discount plus $90,000 of financing charges were amortized on a straight-line basis over the term of the debentures, and were fully amortized at December 31, 2002.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 59,407 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
During 2004, $10,500 of the debenture was converted into 35,000,000 shares of common stock and during 2003; $3,164 of the debenture was converted into 15,818,010 shares of common stock.
In December, 2001 the Company issued three convertible debentures for an aggregate amount of $500,000. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due December 31, 2002. Interest accrues at the rate of 12% per annum through maturity, and increased to 15% per annum during the default period. Quarterly interest payments were not made, and accordingly accrued interest payable related to the notes totaling $210,000 is included in the accompanying condensed consolidated financial statements.
The holders have the right to convert the principal amount plus accrued interest into shares of the Company's common stock at any time. The conversion price in effect on any Conversion Date shall be the lesser of $.043 per share or 50% of the average of the lowest three inter-day sales prices during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 1,500,000 shares of common stock of the Company at an exercise price per share equal to the lesser of $.02 or the average of the lowest three inter-day sales prices during the twenty Trading Days immediately prior to exercise. The estimated fair value of the warrants of $90,000 was allocated to paid-in capital. This resulting debt discount plus $77,500 of financing charges were amortized on a straight-line basis over the term of the debentures, and were fully amortized at December 31, 2002.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 388,800 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In June 2002, a 12% convertible promissory note for $75,000 was issued to two investors. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due in August 2003. The debentures accrue interest at the rate of 12% per annum. A late fee equal to 15% of the accrued and unpaid interest is also assessed during the default period. Quarterly interest on the debentures was not paid and accordingly accrued interest and late fees payable related to the notes totaling $29,071 is included in the accompanying condensed consolidated financial statements.
The holders have the right to convert the principal amount plus unpaid accrued interest into shares of the Company's common stock at any time through repayment. The conversion price is equal to fifty percent of the average of the lowest three (i) inter-day trading prices, or (ii) if the common stock is traded on the OTC Bulletin Board or Pink Sheets, the prices asked by any person or entity acting as a market maker in the common stock during the twenty trading days immediately preceding the relevant date upon which a conversion is effected.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 59,430 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In September 2002, the Company issued secured convertible debentures in the aggregate principal amount of $100,000. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due on September 30, 2003. The debentures accrue interest at the rate of 12% per annum. A late fee equal to 15% of the accrued and unpaid interest is also assessed during the default period. Quarterly interest on the debentures was not paid, and accordingly accrued interest and late fees payable related to the notes totaling $30,000 are included in the accompanying condensed consolidated financial statements.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
The holders have the right to convert the principal amount and interest due under the debentures into shares of common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $0.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable conversion date.
The Company also issued common stock purchase warrants for the right to purchase 300,000 shares of common stock of the Company at an exercise price per share equal to $.01. The estimated fair value of the warrants was zero. Debt issuance costs of $27,500 were also amortized on a straight-line basis over the term of the debentures and were fully amortized at December 31, 2003.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 79,190 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In January, 2003 the Company issued three convertible debentures for an aggregate amount of $250,000, with simple interest accruing at the annual rate of 10%. The debentures are collateralized by substantially all of the company's assets. These debentures are in default as they were due January 10, 2004. Quarterly interest was not paid and accordingly, accrued interest of $61,415 is included in the condensed consolidated financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $0.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 750,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. Financing costs incurred of $56,750 were fully amortized at December 31, 2003.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 92,225 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In February, 2003, the Company issued three convertible debentures for an aggregate amount of $125,000, with simple interest accruing at the annual rate of 10%. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due February 27, 2004. Quarterly interest due was not paid and accordingly accrued interest of $28,125 is included in the condensed consolidated financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $0.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 375,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. Debt issuance costs of $10,843 were also amortized on a straight-line basis over the term of the debentures. Amortization expense during 2004 was $24,307 and the costs were fully amortized as of December31, 2004.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 47,850 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In April, 2003, The Company issued three convertible debentures for an aggregate amount of $125,000, with simple interest accruing at the annual rate of 10%. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due March 31, 2004. Quarterly interest was not paid and accordingly accrued interest of $15,834 is included in the condensed consolidated financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $0.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 375,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. Debt issuance costs of $20,844 were also amortized on a straight-line basis over the term of the debentures. Amortization expense during 2004 was $38,591 and the costs were fully amortized as of December31, 2004.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 68,250 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In October, 2003, the Company issued two convertible debentures for an aggregate amount of $165,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. The debentures are in default as they were due October 1, 2004. Quarterly interest was not paid and accordingly accrued interest of $25,988 is included in the condensed consolidated financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The debenture holders also received warrants to purchase 1,505,000 shares at an exercise price of $0.01 per share. The estimated fair value of the warrants was zero. Amortization expense during 2004 was $147,469 and the costs were fully amortized as of December31, 2004.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 326,733 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
In November, 2003, the Company issued two convertible debentures for an aggregate amount of $45,000, with simple interest accruing at the annual rate of 10%. The debentures are in default as they were due November 27, 2004. Quarterly interest was not paid and accordingly accrued interest of $9,453 is included in the condensed consolidated financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 315,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. Amortization expense during 2004 was $47,469 and the costs were fully amortized as of December 31, 2004.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 72,572 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In December, 2003, the Company issued three convertible debentures for an aggregate amount of $45,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. These debentures are in default as they were due by December 3, 2004. Quarterly interest was not paid and accordingly accrued interest of $5,694 is included in the condensed consolidated financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any Conversion Date shall be the lesser of (1) $.005 or (2) 40% of the average of the lowest three inter-day sales prices of the common stock during the twenty Trading Days immediately preceding the applicable Conversion Date.
The Company also issued common stock purchase warrants for the right to purchase 750,000 shares of common stock of the Company at an exercise price per share equal to $0.01. The estimated fair value of the warrants was zero. . Amortization expense during 2004 was $42,349 and the costs were fully amortized as of December 31, 2004.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 72,527 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In February, 2004, the Company issued two convertible debentures for an aggregate amount of $45,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. These debentures are due in February, 2005. Quarterly interest was not paid and accordingly accrued interest of $4,906 is included in the condensed consolidated financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any conversion date shall be the lesser of (1) $.005 or (2) 67% of the average of the lowest three inter-day sales prices of the common stock during the twenty trading days immediately preceding the applicable conversion date. In addition the debenture holders also received warrants to purchase 315,000 shares at an exercise price of $0.005 per share anytime before February 28, 2009. The estimated fair value of the warrants was $504, which was also recorded as a debt discount. The total debt discount is being amortized on a straight line basis which approximates the effective interest method, over the life of the note. $20,317 of this amount was charged to interest expense during 2004. Additional costs of $12,819 incurred with the issuance of the convertible debentures were recorded as deferred financing cost and are being amortized on a straight-line basis, which approximates the effective interest method, over the term of the debentures. Unamortized costs as of December 31, 2004 amounted to $1,068.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $172,265 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In May, 2004, the Company issued four convertible debentures for an aggregate amount of $250,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. These debentures are due in May 2005. Quarterly interest was not paid and accordingly accrued interest of $19,555 is included in the condensed consolidated financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any conversion date shall be the lesser of (1) $.005 or (2) 67% of the average of the lowest three inter-day sales prices of the common stock during the twenty trading days immediately preceding the applicable conversion date. In addition the debenture holders also received warrants to purchase 750,000 shares at an exercise price of $0.005 per share anytime before May 31, 2009. The estimated fair value of the warrants was $5,175, which was also recorded as a debt discount. The total debt discount is being amortized on a straight line basis which approximates the effective interest method, over the life of the note. $35,911 of this amount was charged to interest expense during 2004.
Additional costs of $55,244 incurred with the issuance of the convertible debentures were recorded as deferred financing cost and are being amortized on a straight-line basis, which approximates the effective interest method, over the term of the debentures. Unamortized costs as of December 31, 2004 amounted to $36,829.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $327,750 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In November, 2004, the Company issued four convertible debentures for an aggregate amount of $3,500,000, with simple interest accruing at the annual rate of 12%. The debentures are collateralized by substantially all of the company's assets. These debentures are due in November, 2005. Quarterly interest was not paid and accordingly accrued interest of $36,151 is included in the condensed consolidated financial statements.
The holders have the right to convert the principal amount and interest due under the debentures into shares of the Company's common stock. The conversion price in effect on any conversion date shall be the lesser of (1) $.0005 or (2) 67% of the average of the lowest three inter-day sales prices of the common stock during the twenty trading days immediately preceding the applicable conversion date. In addition the debenture holders also received warrants to purchase 10,500,000 shares at an exercise price of $0.005 per share anytime before November 30, 2009. The estimated fair value of the warrants was $5,250, which was also recorded as a debt discount. The total debt discount is being amortized on a straight line basis which approximates the effective interest method; over the life of the note $71,828 of this amount was charged to interest expense during 2004.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
Additional costs of $391,569 with the issuance of the convertible debentures were recorded as deferred financing cost and are being amortized on a straight-line basis which approximates the effective interest method, over the term of the debentures. Unamortized costs as of December 31, 2004 amounted to $376,509.
In addition, we recorded a derivative liability related to this convertible debenture. The initial fair market value of the conversion option in the amount of $ 2,519,300 was recorded as a debt discount and is being amortized over the stated maturities of the notes using the effective interest method. The fair market value of the conversion feature is also shown as a derivative liability on the company’s balance sheet and is being adjusted to fair market value each reporting period with the change being reported as “other income and expenses” in the statement of operations.
In 2005 the Company converted $643,340 of accrued interest into convertible debentures; $97,402 was recorded as debt discount. In March 2005, $513,431 was repaid on convertible debentures.
Note 5 - Deferred Financing Costs
Deferred financing costs represent cost incurred in connection with the issuance of the convertible debentures. Deferred financing costs are being amortized over the life of the convertible debentures on the straight-line basis, which approximates the effective interest method. The net financing costs were $194,591 and $338,888 for the six months ended June 30, 2006 and 2005, respectively.
Note 6 - Commitments and Contingencies
Operating Lease The Company rents office facilities under a rental agreement that is automatically renewable every four months. The most recent renewal period will expire on August 31, 2006.
CGM leases two facilities, one in Somerset NJ and the other in Staten Island New York under non-cancelable lease agreements that end in December 2007 and December 2008, respectively.
Employment Agreements
Anthony R. Shupin, Chairman, President and Chief Executive Officer. Mr. Shupin was re-appointed as Chairman, President and Chief Executive Officer effective February, 2005. On February 25, 2005, DDSI entered into a five-year employment agreement with Mr. Shupin, which entitled him to a base salary of $215,000 per year, which may at the Board of Directors discretion adjust his base salary (but not below $215,000 per year). Mr. Shupin is also entitled to participate in the Annual Management Bonus Plan. As a participant in the Annual Management Bonus Plan, Mr. Shupin will be eligible to receive bonuses, based on performance, in any amount from 10% to 200% of the Base Salary. In addition, Mr. Shupin shall participate in the Management Equity Incentive Plan. As a participant in the Management Equity Plan, Mr. Shupin will be eligible to receive options, which vest over a period of time from the date of the option's issue, to purchase common shares of DDSI. The Company may grant Mr. Shupin, following the first anniversary of the date hereof and at the sole discretion of the Board of Directors, options to purchase common shares of the Company (subject to the vesting and the satisfaction of the other terms and conditions of such options). Mr. Shupin will be entitled to 25 vacations days per year at such times as may be mutually agreed with the Board of Directors. DDSI will provide Mr. Shupin a monthly car allowance of Six Hundred Dollars ($600.00) along with related car expenses.
Michael J. Pellegrino, Senior Vice President and Chief Financial Officer. Mr. Pellegrino was appointed as Senior Vice President and Chief Financial Officer effective February 25, 2005. On February 25, 2005, DDSI entered into a five-year employment agreement with Mr. Pellegrino, which entitled him to a base salary of $175,000 per year which may at the Board of Directors discretion adjust his base salary (but not below $175,000 per year). Mr. Pellegrino is also entitled to participate in the Annual Management Bonus Plan. As a participant in the Annual Management Bonus Plan, Mr. Pellegrino will be eligible to receive bonuses, based on performance, in any amount from 10% to 200% of the Base Salary. In addition, Mr. Pellegrino shall participate in the Management Equity Incentive Plan. As a participant in the Management Equity Incentive Plan, Mr. Pellegrino will be eligible to receive options, which vest over a period of time from the date of the option's issue, to purchase common shares of DDSI. DDSI may also grant to the Employee, following the first anniversary of the date of the Agreement and at the sole discretion of the Board of Directors, options to purchase common shares of the Company (subject to the vesting and the satisfaction of the other terms and conditions of such options). Mr. Pellegrino will be entitled to 25 vacation days per year at such times as may be mutually agreed with the Board of Directors. DDSI shall also furnish Mr. Pellegrino with monthly car allowance of Six Hundred Dollars ($600.00) and related car expenses.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
DDSI has an employment agreement with Erik Hoffer, pursuant to which Mr. Hoffer will be employed as Executive Vice President of the Company for an initial term of three years, which may be extended, and President of CGM Sub for an initial term of one year, which may be renewed for successive one-year terms. Pursuant to the Employment Agreement, Mr. Hoffer will receive a base salary of $200,000, a bonus of 5% of the gross margin sales increase over the prior year's gross margin sales of CGM products and customary benefits and reimbursements.
Note 7 - Stock Option and Other Plans
The Company maintains the 1994 Restated Stock Option Plan (the 1994 Plan) pursuant to which the Company reserved 5,000,000 shares of common stock. The options granted have a term of ten years and are issued at or above the fair market value of the underlying shares on the grant date. The Company also maintains the 1996 Director Option Plan (the Director Plan) pursuant to which the Company reserved 200,000 shares of common stock. Options granted under the Director Plan are issued at or above the fair market value of the underlying shares on the grant date. A portion of the first option vests at the six-month anniversary of the date of the grant and continues over a four-year period. Subsequent options vest on the first anniversary of the grant date. The options expire ten years from the date of the grant or 90 days after termination of employment, whichever comes first.
The following is a summary of option activity under all plans:
1994 Plan 1996 Director Plan Nonqualified Total Number of Options Weighted Average Exercise Price
Outstanding at June 30, 2005 33,000 -- -- 33,000 $ .10-$.365
Outstanding at June 30, 2006 33,000 33,000 $ .10-.365
Net loss and net loss per common share determined as if the Company accounted for stock options granted under the fair value method of SFAS 123 would result in the same amounts reported.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
Note 8 - Contingency
There were two holders of convertible notes dated December 31, 2001 who could potentially seek similar damages from the Company. Should they seek these damages, the Company could incur additional expense of $71,668. Management feels however, that the likelihood that the other holders will seek the damages is remote, and therefore, no provision for this expense has been made in the accompanying condensed consolidated financial statements.
On October 16, 2003, a judgment was entered against the Company by its landlord, BT Lincoln L.P. for breach of lease in the amount of $184,706.76. The Company intends to negotiate a settlement.
Note 9 - Related Parties
A Director of the Company provided consulting services during 2006 and 2005 that amounted to $0 and $4,000 respectively. As of June 30, 2006, the Company owes this Director $0.
Note 10 - Purchase of CGM Applied Security Technology, Inc.
On March 1, 2005, the Company acquired substantially all of the assets of CGM Security Solutions, Inc., a Florida corporation ("CGM"), for (i) $1,500,000 in cash and (ii) a 2.86% promissory note (the "Note") in the principal amount of $3,500,000, subject to adjustment (the "Acquisition"). The assets of CGM were acquired pursuant to an Asset Purchase Agreement among the Company and CGM dated as of February 25, 2005. In connection with the acquisition, the Company and CGM each entered into an employment agreement with Erik Hoffer (the "Employment Agreement"). CGM is a manufacturer and distributor of barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers.
The principal amount of the Note is subject to adjustment based upon the average of (i) the gross revenues of CGM for the fiscal year ending December 31, 2007 and (ii) an independent valuation of CGM Sub based upon the consolidated audited condensed consolidated financial statements of the Company and CGM Sub for the fiscal years ending December 31, 2006 and 2007. In addition, the Company has granted CGM a secondary security interest in substantially all of its assets and intellectual property.
In connection with the Acquisition, the Company entered into a letter agreement with certain of its investors (the "Investors") which extended the maturity date of debt instruments issued on November 30, 2004 until March 1, 2008, and amended the conversion price of the debt that is held by the Investors to the lower of (i) $0.0005 or (ii) 40% of the average of the three lowest intraday trading prices for the Company's common stock during the 20 trading days before, but not including, the conversion date. In addition, the exercise price of the warrants held by the Investors was amended to $.001 per share.
Note 11 - Restatement
We have restated the condensed consolidated financial statements for the six months ended June 30, 2005. Based upon the guidance in SFAS133 and EITF00-19, the Company concluded that the conversion features of it convertible debentures were required to be accounted for as derivatives. The imbedded derivative feature was bi-furcated and the fair market value was determined using a convertible bond valuation model. The derivative instruments are recorded at fair market value with changes in value recognized during the period of change.
The impact on the condensed consolidated financial statements is summarized below.
Digital Descriptor Systems, Inc. and Subsidiary Notes to the Condensed Consolidated Financial Statements (Unaudited) For the Six Months Ended June 30, 2006 and 2005 (Restated)
June 30, 2005 As Reported As Restated Debt discount and deferred financing costs, net $ 2,186,504 338,888 Total Assets 7,976,131 6,128,515 Accumulated deficit (22,615,854 ) (30,134,466 )
Total Liabilities and Shareholders Deficit 7,976,131 6,128,515
Interest and amortization of deferred debt costs 894,963 599,298 Total Other Expenses 919,893 3,031,094 Net Loss (1,294,575 ) (3,404,896 )
Net loss per Share (.00 ) (.01 )
Note 12 - Going Concern
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which contemplates continuation of the Company as a going concern. The Company has sustained operating losses and has accumulated large deficits for the six months ended June 30, 2006 and 2005. These factors raise substantial doubt about its ability to continue as a going concern.
Management has formulated and is in the process of implementing its business plan intended to develop steady revenues and income, as well as reducing expenses in the areas of operations. This plan includes the following management objectives:
· Soliciting new customers in the U.S. · Expanding sales in the international market · Expanding sales through E-commerce · Adding new distributor both in the U.S and internationally · The introduction of new products into the market · Seeking out possible merger candidates
Presently, the Company cannot ascertain the eventual success of management’s plan with any degree of certainty. The accompanying consolidated financial statements do not include any adjustments that might result from the eventual outcome of the risks and uncertainties described above.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following is management's discussion and analysis of certain significant factors that will have affected our financial condition and results of operations. Certain statements under this section may constitute "forward-looking statements". The following discussion should be read in conjunction with our condensed consolidated financial statements and notes thereto included in this report.
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THREE MONTHS ENDED JUNE 30, 2005
Revenues for the three months ended June 30, 2006 were $1,233,729 compared to $875,513 for the three months ended June 30, 2005 (restated), an increase of $358,216 or 409%. DDSI generates its revenues through software licenses, hardware, post customer support arrangements and other services. The increase in DDSI's revenue is attributed to the purchase of CGM Applied Security Technology, Inc in March, 2005.
Cost of revenue for the three months ended June 30, 2006 was $334,538 compared to $447,460 for the three months ended June 30, 2005 (restated), a (decrease) of ($112,922) or (25%). The decrease was attributable more efficient purchasing procedures of raw material and more efficient production procedures put into place. Cost of revenue sold as a percentage of revenue for the three months ended June 30, 2006 was 27% of total revenues.
Operating expenses for the three months ended June 30, 2006 were $677,406 compared to $642,177 for the three months ended June 30, 2005 (restated), an increase of $35,229 or 5%. This increase was mainly attributable management’s controls over spending.
General and Administrative expenses for the three months ended June 30, 2006 were $555,264 compared $555,080 for the three months ended June 30, 2005 (restated) for an increase of $184. This increase was mainly attributable management’s controls over spending.
Sales and Marketing expenses for the three months ended June 30, 2006 were $95,011 compared $60,585 for the three months ended June 30, 2005 (restated) for an increase of $34,426 or 57%. This increase was mainly attributable to the company increasing its advertising budget due to the purchase of CGM Applied Security Technologies, Inc.
Research and development expenses for the three months ended June 30, 2006 were $27,131 compared to $26,512 for the three months ended June 30, 2005 (restated) for an increase of $619 or 2%.
The net (loss) for DDSI increased ($215,942) or 12% for the three months ended June 30, 2006 to $(2,024,062) from $(1,808,120) for the three months ended June 30, 2005 (restated). This was primarily due to the change in accounting procedures in which convertible debentures are treated as derivative according to the guidance of SFAS133 and EITF00-19.
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO SIX MONTHS ENDED JUNE 30, 2005
Revenues for the six months ended June 30, 2006 of $2,104,693 compared to $1,024,388 for the six months ended June 30, 2005 (restated), an increase of $1,080,305 or 106%. DDSI generates its revenues through software licenses, hardware, post customer support arrangements and other services. The increase in DDSI's revenue is attributed to the purchase of CGM Applied Security Technology, Inc in March, 2005.
Cost of revenue for the six months ended June 30, 2006 was $627,880 compared to $492,161 for the six months ended June 30, 2005 (restated), an increase of $135,719 or 28%. The increase was attributable to the purchase of CGM Applied Security Technology, Inc in March 2005. Cost of revenue sold as a percentage of revenue for the six months ended June 30, 2006 was 34% of total revenues.
Operating expenses for the six months ended June 30, 2006 was $1,367,628 compared to $906,129 for the six months ended June 30, 2005 (restated), an increase of $461,499 or 51%. This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
General and Administrative expenses for the six months ended June 30, 2006 were $1,095,926 compared $775,453 for the six months ended June 30, 2005 (restated) for an increase of $320,473 or 41%. This increase was mainly attributable to the purchase of CGM Applied Security Technology, Inc in March 2005.
Sales and Marketing expenses for the six months ended June 30, 2006 were $218,048 compared $79,070 for the six months ended June 30, 2005 (restated) for an increase of $138,978 or 176%. This increase was mainly attributable to the company increasing its advertising budget due to the purchase of CGM Applied Security Technologies, Inc.
Research and development expenses for the six months ended June 30, 2006 were $53,654 compared to $51,606 for the six months ended June 30, 2005 (restated) for an increase of $2,048 or 4%. This increase was due in part to upgrades necessary to keep current.
The net (loss) for DDSI increased ($516,937) or 15% for the six months ended June 30, 2006 to $(3,921,933) from $(3,404,996) for the six months ended June 30, 2005 (restated). This was primarily due to the change in accounting procedures in which convertible debentures are treated as derivative according to the guidance of SFAS133 and EITF00-..
Net cash provided by (used in) operating activities for the six months ended June 30, 2006 and the six months ended June 30, 2005 (restated) was $51,511 and ($444,915), respectively. The increase in cash provided by (used in) operating activities for the six months ended June 30, 2006 of $496,426. This increase was due in part to less expenditures for infrastructure necessary after the purchase of CGM Applied Security Technology, Inc. in March 2005.
Net cash (used in) investing activities was ($22,907) and ($1,550,492) for the six months ended June 30, 2006 and June 30, 2005 (restated), respectively. This increase was due in part to less expenditures for infrastructure necessary after the purchase of CGM Applied Security Technology, Inc. in March 2005.
Net cash provided by (used in) financing activities was $(0) and $($515,871) for the six months ended June 30, 2006 and the six months ended June 30, 2005, respectively. This increase was due to repayment of officers for monies owed.
LIQUIDITY AND CAPITAL RESOURCES
DDSI's revenues have been insufficient to cover the cost of revenues and operating expenses. Therefore, DDSI has been dependent on private placements of its common stock and issuance of convertible notes in order to sustain operations. In addition, there can be no assurances that the proceeds from private or other capital will continue to be available, or that revenues will increase to meet DDSI's cash needs, or that a sufficient amount of DDSI's common stock or other securities can or will be sold or that any common stock purchase options/warrants will be exercised to fund the operating needs of DDSI.
Over the next twelve months, management is of the opinion that sufficient working capital will be obtained from operations and external financing to meet DDSI's liabilities and commitments as they become payable. DDSI has in the past relied on private placements of common stock securities, and loans from private investors to sustain operations. However, if DDSI is unable to obtain additional funding in the future, it may be forced to curtail or terminate operations. At June 30, 2006, DDSI had assets of $6,065,603 compared to $6,128,515 on June 30, 2005 a decrease of ($62,912) and shareholder (deficit) of $(12,416,417) on June 30, 2006 compared to shareholder (deficit) of $(10,399,406) on June 30, 2005, an increase of ($1,897,871). This increase in shareholder (deficit) for the six months ended June 30, 2006 resulted from the net loss for the six months ended June 30, 2006.
Plan of Operations
Acquisition of CGM
On March 1, 2005, DDSI and CGM Sub acquired substantially all of the assets of CGM, for (i) $1,500,000 in cash and (ii) a 2.86% promissory note (the "Note") in the principal amount of $3,500,000, subject to adjustment (the "Acquisition"). The assets of CGM were acquired pursuant to an Asset Purchase Agreement among DDSI, CGM Sub and CGM dated as of February 25, 2005.
The principal amount of the Note is subject to adjustment based upon the average of (i) the gross revenues of CGM Sub for the fiscal year ending December 31, 2007 and (ii) an independent valuation of CGM Sub based upon the consolidated audited condensed consolidated financial statements of the Company and CGM Sub for the fiscal years ending December 31, 2006 and 2007. In addition, the Company has granted CGM a secondary security interest in substantially all of its assets and intellectual property.
In connection with the Acquisition, the Company entered into a letter agreement with certain of its investors (the "Investors") which extended the maturity date of debt instruments issued on November 30, 2004 until March 1, 2008, and amended the conversion price of the debt that is held by the Investors to the lower of
(i) $0.0005 or (ii) 60% of the average of the three lowest intraday trading prices for the Company's common stock during the 20 trading days before, but not including, the conversion date. In addition, the exercise price of the warrants held by the Investors was amended to $.001 per share.
The short-term objective of DDSI is the following:
The Company plans to spend the majority of it's time and efforts on increasing the revenue and marketplace of its wholly owned subsidiary, CGM Applied Security Technologies, as it feels that there is a much greater potential for growth of the product line of CGM. In order to accomplish this, the Company has hired additional sales people and is increasing its marketing budget in order to expand the awareness of CGM's product line. In addition, the Company has begun a complete revamping of the company's infrastructure in order to make it better able to respond to the need of its customers and to give management the reporting it needs on a timely basis.
Additionally, DDSI plans to execute an acquisition strategy based upon the availability of financing.
We also plan to add additional product lines as a Value Added Reseller. Technologies related to DDSI's core business can bring additional cash flow with relatively small internal development capital outlay.
DDSI's long-term objective is as follows:
To enhance its sales of the product line acquired with the acquisition of CGM both domestically and internationally, though the addition of sales representative and distributors
To seek additional products to sell into its basic business market - Criminal Justice - so that DDSI can generate sales adequate enough to allow for profits.
DDSI believes that it will not reach profitability in the foreseeable future due to its debt service. Over the next twelve months, management is of the opinion that sufficient working capital will be obtained from operations and external financing to meet DDSI's liabilities and commitments as they become payable. DDSI has in the past successfully relied on private placements of common stock securities, bank debt, loans from private investors and the exercise of common stock warrants in order to sustain operations. If DDSI is unable to obtain additional funding in the future, it may be forced to curtail or terminate operations.
DDSI is doing the following in its effort to reach profitability:
o The Company is putting a great deal of effort to increase the sales of the CGM subsidiary. The Company believes at this time that the most significant growth in revenue will come from CGM and its product lines.
o Cutting costs in areas that add the least value to DDSI.
o Deriving funds through investigating business alliances with other companies who may wish to license the FMS SDK (software developer's kit).
o Increasing revenues through the introduction of Compu-Capture(R), specifically towards kindergarten through twelfth grades, for the creation of ID cards.
o Increasing revenues through the introduction of a scaled down version of our Compu-Capture(R) product.
o Increasing revenues through the addition of innovative technologies as a Value Added Seller.
o Acquiring and effectively adding management support to profitable companies complementary to its broadened target markets.
Liquidity and Capital Resources
We had net losses of ($3,921,933) and ($3,404,996) during the six months ended June 30, 2006 and 2005, respectively. As of June 30, 2006, we had a cash balance in the amount of $129,313 and current liabilities of $13,328,010. The total amount of notes payable and debentures is $8,659,726. We may not have sufficient cash or other assets to meet our current liabilities. In order to meet these obligations, we may need to raise cash from the sale of securities or from borrowings.
The Company's revenues have been insufficient to cover the cost of revenues and operating expenses. Therefore, the Company has been dependent on private placements of its Common Stock and issuance of convertible notes in order to sustain operations. In addition, there can be no assurances that the proceeds from private placements or other capital will continue to be available, or that revenues will increase to meet the Company's cash needs, or that a sufficient amount of the Company's Common Stock or other securities can or will be sold or that any Common Stock purchase options/warrants will be exercised to fund the operating needs of the Company.
The Company has contractual obligations of $10,413,052 as of June 30, 2006. These contractual obligations, along with the dates on which such payments are due are described below:
Contractual Obligations Total One Year of Less More Than One Year Due to Related Parties $ 0 $ 0 $ 0 Accounts Payable and Accrued Expenses 603,296 603,296 0 Accrued interest on loans 1,150,030 1,150,030 0 Note payable 3,500,000 0 3,500,000 Convertible Debentures 5,159,726 3,505,716 1,654,010 Total Contractual Obligations $ 10,413,052 $ 5,259,042 $ 5,154,010
The Company is currently in default on several of the convertible debentures that are included in current liabilities. Below is a discussion of our sources and (uses) of funds for the six months ended June 30, 2006 and 2005 (restated), respectively.
Off Balance Sheet Arrangements
We do not have any off balance sheet arrangements as of June 30, 2006 or as of the date of this report.
Item 3. Control and Procedures
(a) Evaluation of Disclosure Controls and Procedures
As of June 30, 2006, we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in our periodic reports is recorded, processed, summarized and reported, within the time periods specified for each report and that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b) Changes in Internal Controls.
There was no change in our internal controls over financial reporting that has materially affected, or is reasonable likely to materially affect, our internal control over financial reporting during the quarter covered by this Report.
The Company is in default of $1,733,478 of outstanding debentures. Although the debenture holders have not pursued their rights under such debentures, there can be no assurances that such rights will not be exercised.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits
4.1 Security Agreement dated February 25, 2005 by and between CGM Applied Security Technologies, Inc. and CGM Security Solutions, Inc. (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 4.2 Intellectual Property Security Agreement dated February 25, 2005 by and between CGM Applied Security Technologies, Inc and CGM Security Solutions, Inc. (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 4.3 Letter Agreement, by and among the Company, AJW Partners, LLC, New Millennium Capital Partners II, LLC, AJW Offshore, Ltd. and AJW Qualified Partners, LLC, dated January 31, 2005 (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 4.4 2.86% Secured Convertible promissory Note in the name of CGM Security Solutions, Inc. dated February 25, 2005 (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 10.1 Asset Purchase Agreement dated February 25, 2005 by and among the Company, CGM Applied Security Technologies, Inc. and CGM Applied Security Solutions. (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 10.2 Employment Agreement, dated February 25, 2005, by and among the Company, CGM Applied Security Technologies, Inc. and CGM Security Solutions, Inc. and Eric Hoffer (incorporated herein by reference to the Current Report on Form 8-K, dated March 3, 2005) 10.3 Employment Agreement dated February 25, 2005 by and among the Company and Anthony Shupin (incorporated herein by reference to the Current Report on Form 8-K, dated April 15, 2005) 10.4 Employment Agreement dated February 25, 2005 by and among the Company and Michael J. Pellegrino (incorporated herein by reference to the Current Report on Form 8-K, dated April 15, 2005) 31.1 Certification by Chief Executive Officer pursuant to Sarbanes-Oxley Section 302 31.2 Certification by Chief Financial Officer pursuant to Sarbanes-Oxley Section 302 32.1 Certification by Chief Executive Officer pursuant to 18 U.S.C., Section 1350 32.2 Certification by Chief Financial Officer pursuant to Sarbanes-Oxley Section 1350
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DIGITAL DESCRIPTOR SYSTEMS, INC. (Registrant)
Date: August , 2006 By: /s/ ANTHONY SHUPIN
-------------------------------------------------------------------------------- Anthony Shupin (President, Chief Executive Officer) (Chairman)
Michael J. Pellegrino Senior Vice President & CFO (Director)
22 --------------------------------------------------------------------------------
Posted by JIF on :
This is my favorite part:
Revenues for the three months ended June 30, 2006 were $1,233,729 compared to $875,513 for the three months ended June 30, 2005 (restated), an increase of $358,216 or 409%. DDSI generates its revenues through software licenses, hardware, post customer support arrangements and other services. The increase in DDSI's revenue is attributed to the purchase of CGM Applied Security Technology, Inc in March, 2005.
Cost of revenue for the three months ended June 30, 2006 was $334,538 compared to $447,460 for the three months ended June 30, 2005 (restated), a (decrease) of ($112,922) or (25%). The decrease was attributable more efficient purchasing procedures of raw material and more efficient production procedures put into place. Cost of revenue sold as a percentage of revenue for the three months ended June 30, 2006 was 27% of total revenues.
Operating expenses for the three months ended June 30, 2006 were $677,406 compared to $642,177 for the three months ended June 30, 2005 (restated), an increase of $35,229 or 5%. This increase was mainly attributable management’s controls over spending.
Posted by RJD2000 on :
Well any of you financial experts have any comments?
Posted by Schwabie on :
JIF I told you I was checking it. I got it to the second lol... I clicked it twice nothing then BAM !
Posted by gatorhistory on :
quote:Revenues for the three months ended June 30, 2006 were $1,233,729 compared to $875,513 for the three months ended June 30, 2005 (restated), an increase of $358,216 or 409%.
Continued growth....409% is outstanding if you ask me! Let's see a nice PR to the investment community about it now.
Posted by Schwabie on :
All I have to say is there will be a PR with the percentage of revenue increase. They always do. That is a fact per prior history of PR. Once they PR it I think volume will increase.
I dont care about anything else just the fact that they keep increasing their revenues. THAT IS GOOD !
Per past history also, if it runs it will be like 5 days after not immediately.
Posted by gatorhistory on :
and revenue is up from last quarter might I add....
Posted by Schwabie on :
Also, shares did not increase that much due to the CD's . Thank god I was expecting 15 billion Shares out.
Posted by jon clogger on :
Man I was ready to quit my job today, tell the boss to kiss my culo, order 2 large pizzas on the way home, pick up a case of beer, and buy that '56 chevy apache on e-bay I've had my eye on.
Maybe tomorrow...
Posted by Schwabie on :
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO SIX MONTHS ENDED JUNE 30, 2005
Revenues for the six months ended June 30, 2006 of $2,104,693 compared to $1,024,388 for the six months ended June 30, 2005 (restated), an increase of $1,080,305 or 106%. DDSI generates its revenues through software licenses, hardware, post customer support arrangements and other services. The increase in DDSI's revenue is attributed to the purchase of CGM Applied Security Technology, Inc in March, 2005.
Cost of revenue for the six months ended June 30, 2006 was $627,880 compared to $492,161 for the six months ended June 30, 2005 (restated), an increase of $135,719 or 28%. The increase was attributable to the purchase of CGM Applied Security Technology, Inc in March 2005. Cost of revenue sold as a percentage of revenue for the six months ended June 30, 2006 was 34% of total revenues.
The purchase of CGM Applied Security Technology is already paying off.
Posted by Schwabie on :
Volume increased by 11 million... let's keep it going....
Can I get some stars please... I provided 10Q to the second it came out Posted by bksundar on :
10Q looks excellent...
Posted by jon clogger on :
5 stars for you Schwabie
Posted by Schwabie on :
I made another thread to let people know the 10Q is out... Hehe
Posted by BuckyBarnes on :
DITTO
quote:Originally posted by jon clogger: 5 stars for you Schwabie
Posted by RJD2000 on :
quote:Originally posted by jon clogger: 5 stars for you Schwabie
Same from me. LOL.
Thanks for brightening my day. Posted by FARIMI on :
Volume stop! why?, we supose to fly! anybody?
Posted by RJD2000 on :
Shall we dump this thread and go with the new one. The current title is getting old "DDSI Executives provide short Q&A"
Posted by Schwabie on :
Yes... lets go there... I'll re-post everything of substance there ...
Posted by RJD2000 on :
quote:Originally posted by FARIMI: Volume stop! why?, we supose to fly! anybody?
It will take a few days for people to catch on. JMHO. Don't expect dollar land. Maybe in a year or two. again JMHO.
GLTA
Posted by RJD2000 on :
Ok so where did it go?
Posted by Schwabie on :
Hmm someone tell administrator to kill this one so we can use the other one.... Q & A was a long time ago...
Posted by MoneyMoneyMoney on :
Why can't we get a new thread? This title sucks and is old!!! I like the newer title better. I planned on linking and asking to lock this one but wow, not even a question of our preference.
Posted by BuckyBarnes on :
Schabie....where did your new thread go?....it was there a moment ago.....
Posted by BuckyBarnes on :
Schwabie....sorry for the typo...typed too fast in the rush...
Posted by jon clogger on :
I think the mods deleted our new thread.
Posted by RJD2000 on :
Tripple M the title doesn't suck. Its just old. It apllied at the time but, we have moved on.
GLTA
Thanks for the extra star.
Posted by Schwabie on :
How do I contact the administrator/ moderator?
Posted by jon clogger on :
Just insult them a little, you'll get their attention and see your stars disappear
Posted by Schwabie on :
Nah, I like my stars keep em coming lol
Posted by Schwabie on :
How do I contact the administrator/ moderator? So I can make a new thread? Anyone? I think his name is Bob..
Posted by jon clogger on :
Okay, I just lost a star and I noticed Schwabie did too after everyone gave him a 5- who the hell got a hair in their a$$ and swept us with a one rating?
Not that it's a huge deal, but you got too much time on your hands.
Posted by Schwabie on :
Yes, that's funny... my stars went down not up LOL. Wait till this runs Posted by Schwabie on :
38 Million volume and growing !
Posted by bksundar on :
I just bought 7m/$1400
Posted by megahead34 on :
10Q looks good overall, but this part scared me:
"However, if DDSI is unable to obtain additional funding in the future, it may be forced to curtail or terminate operations. "
Posted by Borknagar on :
10Q is out and nothing happend, i think it will be between 0.0001 and 0.0002 a long long time
Posted by Wino Ph.D. on :
I think a lot penny stocks have that statement in their 10Qs.
Posted by bksundar on :
I am taking my chances. Almost all penny stocks give similar statements in the risk section...
Posted by Schwabie on :
Information isn't out yet... wait until they PR it. Also per past history, if it runs.. it usually does it 5 days after PR.
Posted by Schwabie on :
Had to remove Rating... someone kept making new ID's and giving me bad Rating... how sad, do people really have nothing else to do? Guess not... Get a life...
Posted by JIF on :
quote:Originally posted by Schwabie: All I have to say is there will be a PR with the percentage of revenue increase. They always do. That is a fact per prior history of PR. Once they PR it I think volume will increase.
I dont care about anything else just the fact that they keep increasing their revenues. THAT IS GOOD !
Per past history also, if it runs it will be like 5 days after not immediately.
Don't discount the fact that their costs are also going down or staying neutral. That means it won't cost them additional money to product additional revenue. That's the key to creating a profit MARGIN.
Posted by megahead34 on :
If this is still restricted, we won't see much volume at all.
Posted by FARIMI on :
whata F... 0001? are the dam MM in now? *******s
Posted by Upside on :
quote:Originally posted by megahead34: 10Q looks good overall, but this part scared me:
"However, if DDSI is unable to obtain additional funding in the future, it may be forced to curtail or terminate operations. "
That statement will appear in just about all filings of small, cash strapped companies. The main problems I see here are the 9+ billion shares outstanding and the fact that while their gross profit doubled, their loss widened as well.
Posted by megahead34 on :
If this wasn't restricted, i'm sure we would have seen much higher volume.
Posted by RJD2000 on :
quote:Originally posted by Schwabie: Had to remove Rating... someone kept making new ID's and giving me bad Rating... how sad, do people really have nothing else to do? Guess not... Get a life...
Thats sad most people get to know who is honest and trying to be helpful so the star rating system isn't all whats its cracked up to be. I've seen people with 5 posts and have 5 stars.
GLTA
Posted by Schwabie on :
This stock has been on .0001 to .0002 for a while. Since you cannot purchase at .0001 I believe MM's pull it down to .0001 to scare you to sell for a loss. The ONLY entry point is .0002 IMHO.
Posted by Schwabie on :
Common stock, par value $.001; authorized 9,999,000,000 shares; 9,243,406,000 issued and outstanding
Thats good news so they may only add another 755.5 mill and none more. Unless of course paperwork is filed.
If you start a new thread then post the link for this one on it and then ask Mod to lock this one.
DDSI is doing the following in its effort to reach profitability:
o The Company is putting a great deal of effort to increase the sales of the CGM subsidiary. The Company believes at this time that the most significant growth in revenue will come from CGM and its product lines.
o Cutting costs in areas that add the least value to DDSI.
o Deriving funds through investigating business alliances with other companies who may wish to license the FMS SDK (software developer's kit).
o Increasing revenues through the introduction of Compu-Capture(R), specifically towards kindergarten through twelfth grades, for the creation of ID cards.
Posted by RJD2000 on :
quote:Originally posted by Upside:
quote:Originally posted by megahead34: 10Q looks good overall, but this part scared me:
"However, if DDSI is unable to obtain additional funding in the future, it may be forced to curtail or terminate operations. "
That statement will appear in just about all filings of small, cash strapped companies. The main problems I see here are the 9+ billion shares outstanding and the fact that while their gross profit doubled, their loss widened as well.
What was the pecentage of the deficit in comparison to last years deficit and how is it in comparison to overall revenue growth?
For everyone that is new don't expect to be millionairs overnight. It just doesn't happen that quickly. The O/S is to high for dollar land. JMHO. I do think we will run and we will run again as subsequent quarterly reports are released. We are watching the growth of a company and profiting along the way. JMHO.
GLTA
Posted by Schwabie on :
Money how do I contact them so I can open a new thread?
Posted by bksundar on :
2:44:38 PM Trade 0.0002 7000000 is mine!!!
Posted by Schwabie on :
lol. nice... here are a few more.. I'm delayed but free
3:03:40 PM Trade 0.0001 1000000 3:03:40 PM Trade 0.0001 1000000
Posted by RJD2000 on :
We won't move off of .0001/.0002 until the volume is over 1 billion shares. JMHO. That is how it moved back in May.
GLTA
Posted by JIF on :
quote:Originally posted by megahead34: 10Q looks good overall, but this part scared me:
"However, if DDSI is unable to obtain additional funding in the future, it may be forced to curtail or terminate operations. "
They always put this in. It leaves them the option to sell more shares if they want - without anyone being able to get overly mad about it.
You'll see it in lots of 10Qs..
Posted by Borknagar on :
Don't understand why people are so optimistic, what it's supposed that will happen now?What we have to wait now when the 10Q is out?
Posted by RJD2000 on :
quote:Originally posted by Borknagar: Don't understand why people are so optimistic, what it's supposed that will happen now?What we have to wait now when the 10Q is out?
Yes! We have to wait. The volume has to suport the O/S for the PPS to rise. Look at the charts for the last year or so. The company has grown but, it is still a pinky.
GLTA
Posted by gatorhistory on :
quarter over quarter growth, significant growth from a year ago. the next step is profitibility. Once they PR these results we should see some movement.
Posted by FARIMI on :
Any gues when the PR is comming?, usually after 10q,
Posted by JIF on :
Yup, I think they'll do a pr now.
Well definitely see a flurry of releases through bell w e a t h e r
I must be honest: I'm pretty fricken bumbed that it closed at .0001 even after a very good 10q.
Posted by Schwabie on :
Let the mind games begin !
Posted by jon clogger on :
I'm bummed too. I guess I'll be buying myself a beer tonight at the lonely pub outside of town.
The bartender there usually has some good stock picks.
Posted by Soylent Green on :
Schwab....any luck getting a new thread with the administrator?
Posted by Schwabie on :
no not yet... JIF can you get me an ok from the Mods so I can open a new Thread?
Posted by JIF on :
Let me see if I can get the mods to allow us to open a new thread.
What was the name everyone settled on?
Posted by tmanfromtexas on :
JIF, I vote for DDSI sux. J/K TMAN...
Posted by BlindMellonChitlin on :
Just start a new thread......
Posted by Schwabie on :
I did they killed it Posted by Soylent Green on :
DDSI 10Q Released.....409% Revenue Increase!
Try that...
Posted by ed19363 on :
And just like all pennies, the PPS goes nowhere.
Posted by BlindMellonChitlin on :
They messed up...it's a 40.9 percent increase......
Posted by MoneyMoneyMoney on :
quote:Originally posted by Soylent Green: DDSI 10Q Released.....409% Revenue Increase!
Try that...
I like it. Just post the link from this old thread and you'll be good.
Posted by ed19363 on :
That 409% is bogus. Not even close. Somebody must have failed math.
Posted by megahead34 on :
Haha yea, just noticed that....its 40.9%
Posted by FARIMI on :
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